Harare - The Reserve Bank of Zimbabwe (RBZ) urged banking institutions to desist from unwarranted increases in bank charges and interest rates which will have an adverse impact on the economy.
RBZ governor Gideon Gono made the call in a letter to the Bankers Association of Zimbabwe where he said the Memorandum of Understanding (MoU) signed on January 31 2013 will no longer be applicable with effect from December 1 2013.
Gono said following a review of the operating environment and broader circumstances in the wider economy as well as representations from BAZ members, the central bank will not seek to renew the MoU.
He added that the RBZ will continue to assess business conditions being offered by banking institutions as well as performance.
Profits in the banking sector reportedly tumbled after the banks signed a MoU with the RBZ in January to cut customer service fees.
Banks are said to have lost between $40m and $70m in revenue because of the MoU.
*Malcom Sharara is Fin24's correspondent in Zimbabwe.
RBZ governor Gideon Gono made the call in a letter to the Bankers Association of Zimbabwe where he said the Memorandum of Understanding (MoU) signed on January 31 2013 will no longer be applicable with effect from December 1 2013.
Gono said following a review of the operating environment and broader circumstances in the wider economy as well as representations from BAZ members, the central bank will not seek to renew the MoU.
He added that the RBZ will continue to assess business conditions being offered by banking institutions as well as performance.
Profits in the banking sector reportedly tumbled after the banks signed a MoU with the RBZ in January to cut customer service fees.
Banks are said to have lost between $40m and $70m in revenue because of the MoU.
*Malcom Sharara is Fin24's correspondent in Zimbabwe.