See More

Zim banks agree to drop lending rates

Feb 01 2013 13:12
Malcom Sharara, Fin24’s correspondent in Zimbabwe

Related Articles

Support us or leave, Zim tells banks

Zim BEE targets Barclays, Stanbic

Zimbabwe has mere $217 in the bank

Zim banks face huge financial losses

Zim to launch low cost bank account

Zim MDC launches economic blueprint

Harare - Zimbabwean banks have finally agreed to reduce bank charges and lending rates, the Reserve Bank of Zimbabwe (RBZ) has said.
The new measures take effect on February 1.

In his presentation of Zimbabwe’s 2013 Monetary Policy Statement on Thursday, RBZ governor Gideon Gono said banks have agreed to peg lending rates at not more than 12.5% above the bank’s weighted average cost of funds.

Previously lending rates in Zimbabwe were as high as 33% per annum.

Banks also agreed to pay a minimum interest rate of 4% for term deposits of $1 000 or more held over a period of 30 days. Since dollarisation most banks were not paying interest rates on deposits, forcing many Zimbabweans to stay away from the banks.

This meant that the bulk of deposits in the country’s banking sector were transitory and short-term.

The RBZ governor also announced that banks were to reduce their charges for individuals with monthly deposits less than or equal to $800.

The agreed charges for cash withdrawals are now up to 0.5% of cash withdrawn. The amount is however subject to a minimum fee of $2.50.

ATM withdrawal fees are now pegged at $4, while point of sale charges will range between $0.10 and $0.50 per transaction.

High bank charges in the country had resulted in financial exclusion for many Zimbabweans.

According to the Zimbabwe Statistical Office's last report on the financial sector, 40% of Zimbabweans are financially excluded (i e do not use financial products, whether formal or informal, to manage their financial lives).

 - Fin24
zimbabwe  |  economy


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:


There are no formal training requirements for becoming a beautician in South Africa. But it is highly recommended you complete a course in beauty therapy.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

SA’s new visa regulations are:

Previous results · Suggest a vote