• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
See More

Zim worried about bank charges

Aug 08 2012 19:04 AFP

Related Articles

Change sparks fights in coin-starved Zim

Zim to get its first budget airline

Zimplats profit tumbles on weak prices

Zim orders hike in banks' capital base

Zimbabwe needs food aid - UN

Zim unveils community mining scheme

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
Add your comment
Comment 0 characters remaining

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.

The rich will pay - Mpofu

The EFF in Gauteng will focus all its energy on improving the lives of the poor, the party's premier candidate Dali Mpofu says.


Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

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