• Wrap-up: Davos insights

    Alec Hogg speaks about the top three issues at this year's World Economic Forum.

  • Netflix and SA video

    Much of Netflix's potential impact on SA has already been made, says Arthur Goldstuck.

  • Fool's paradise

    Greece's new leader is in the same position as the ANC in 1994, says Leopold Scholtz.

Loading...
See More

Zim comes down hard on banks

Nov 16 2012 09:04 Malcom Sharara, Fin24’s correspondent in Zimbabwe

Related Articles

SA imports hit Zim manufacturers

Zimbabweans ignore high lending rates

IMF eases restrictions on Zim

Zim slashes growth forecast to 4.3%

Biti: Zim economic outlook bleak

Zim rejects bids for treasury bills

 
Harare - Zimbabwe’s Finance Minister Tendai Biti has come down hard on banks and is working towards regulating the lending and deposit rates they charges.

In his 2013 budget speech, Biti proposed that banks pay a minimum interest rate of 4% per annum for all term deposits from a minimum of US$1 000 for 30 days.

Currently most Zimbabwean banks are not paying interest rates on savings and current account deposits.

Biti also proposed that there should be no bank charges for all deposits of less than $800.

On lending rates, he said banks will not be allowed to charge more than 10% interest rates on loans.

“The Central Bank and the Bankers Association of Zimbabwe will sit together and craft a memorandum of understanding on the manner in which the lending rates will be defined,” he said, adding that banks will also take into account the cost of money.

The memorandum of association will then be converted into a statutory instrument.

Biti said Old Mutual and the National Social and Security Authority (NSSA) had agreed that their local bank deposits, which constitute 40% of the country’s deposits, be loaned out at 10% at bank level.

The two institutions and the banks will then agree on how best to share the 10% interest.

Currently lending rates in Zimbabwe range between 15-30%.

 - Fin24
 
zimbabwe  |  banks

NEXT ON FIN24X

 

Latest Articles

8 simple ways to earn extra money Read More...
6 motivational tips to help you save this year Read More...
Invest for Income Read More...
15 Investment Tips for 2015 Read More...
 
 

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
7 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Money Clinic

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