• SABC shenanigans

    SA has already embarked on a slippery slope to autocracy, warns Terry Bell in Inside Labour.

  • Zim tastes people power

    Protests in Zimbabwe are forcing Mugabe to face anti-government sentiment, says Memory Mataranyika.

  • Platinum handshake

    Officials who try to do what's right risk far more than blessed wrongdoers, says Solly Moeng.

All data is delayed
Loading...
See More

Zim worried about bank charges

Aug 08 2012 19:04
AFP
Harare - A Zimbabwean minister said on Wednesday the government is worried about high bank charges and interest rates, in some instances as high as 40%, levied by some of the country's commercial banks.

"Government is concerned with the issue of high lending rates and bank charges," said acting Finance Minister Gorden Moyo.

"When they (industry) come to you, you charge them 40% interest rates. Surely you know it, when you sleep at home, you actually know it, it's not right," Moyo told bank chiefs at a meeting in Harare.

"What is happening in this country is unacceptable," he said.

Moyo also expressed concern at the collapse of banks following the recent closure of a locally-owned Royal Bank, shut down due to a liquidity crunch and bad management.

"We are concerned about the issues of corporate governance, we want a moral climate to exist in our banks. Let's follow the normative values of running financial institutions," said Moyo.

Some of local banks have shareholders doubling as directors and chief executive officers who were awarding themselves loans that were not repaid.

"The issues of owner-managers are issues that we have in mind, they need to be rectified," he said.

Zimbabwe's central bank chief Gideon Gono last month said the country's economy remained fragile with low export earnings, lack of credit lines or foreign direct investment resulting in the liquidity crunch.

Moyo said the government endorsed the central bank's new directive for banks to increase minimum capital requirements by about 1 000% to $100m.

"We are expecting all of you to comply," he told the bank bosses.

Banks have two years to raise the capital, but must by year-end have doubled their current capital base.

He said the new move was aimed at consolidating the banks and growing the sector.

"This policy should not suffocate the indigenous bank, it should help the indigenous bank to grow."

Moyo said the policy is part of the government's economic blueprint to push for growth in the economy after years of decline and world-record hyperinflation that ended only when the country switched to using the US dollar three years ago.

*Follow Fin24 on Twitter, Facebook and Google+.

zimbabwe  |  bank charges

 
 
 

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
2 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

THE SAVINGS ISSUE

Saving can make a lot of things possible, but we all know how hard it is to save. This special Savings Issue will help you get focused.
 

Money Clinic

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

Voting Booth

Sarb's decision to keep the repo rate unchanged is:

Previous results · Suggest a vote

Loading...