Breaking News

Banks to reduce charges substantially

by Staff reporter
01 February 2013 | 3546 Views
BANK charges will soon be reduced substantially following negotiations between the banking sector and the Reserve Bank of Zimbabwe amid concerns that the current level of charges was against international banking practice.

Reserve Bank Governor Dr Gideon Gono disclosed this while presenting his 2013 Monetary Policy Statement in Harare yesterday.

Full Monetary Policy Statement here

He said 25 banks yesterday signed a memorandum of understanding that will chart the way forward.

"Zimbabweans across the board are agreed that the level of bank charges is out of line with international best practice. It is heartening to note that after 75 days of negotiations, the Reserve Bank of Zimbabwe and the banking sector came up with an agreed framework which will see substantial reduction in bank charges," said Dr Gono.

Some of the issues covered under the MoU include a clause that the participating financial institutions will be obliged to pay interest on amounts of $1 000 and above held over a period of at least 30 days.

The agreement also sets cash withdrawal fees, debit card and ledger fees.

He said 14 out of 22 banks had met the first level of minimum requirements by 31 December last year.

Five other banks, Dr Gono said, had made "significant" progress towards complying while two others needed to come up with more "credible" recapitalisation plans.

The central bank raised minimum capital levels for banking institutions last year with commercial and merchant banks required to have capital levels of $100 million from $12,5 million and $10 million respectively. Minimum capital for building societies were raised from $10 million to $80 million, finance and discount houses from $7,5 million to $60 million and $1 million to $5 million for microfinance institutions.

They should be fully compliant by June next year, but were required to meet 25 percent of the new capital levels by 31 December last year.

"In the interest of transparency and accountability, I am pleased to report that a total of 14 banking institutions met the 31 December 2012 minimum threshold," said Dr Gono.

Banks that have complied are CBZ Bank, Standard Bank, Stanbic, BancABC, Barclays, ZB Bank and Kingdom. Others are Ecobank, FBC Bank, MBCA Bank, TN, CABS, Tetrad and NMB Bank.

Agribank, FBC Building Society, Trust Bank, Metbank and ZB Building Society banks have made significant progress, Dr Gono said, adding that the other two, ZABG Bank and Capital Bank, still need to come up with their recapitalisation plans.

ZABG Bank was negotiating for a $40 million facility with the National Indigenisation and Economic Empowerment Fund. Interfin remains under curatorship.

Dr Gono said the central bank had finalised a blueprint of the Banking Sector Vision 2020. The vision is centred around the pursuance of banking sector solvency and stability to anchor sustained economic growth and development.

It seeks to achieve, among other things, a thriving banking sector with functional lender of last resort and active inter-bank market, the establishment of universal banks and an integrated framework, adequately capitalised and competitive banking sector with the ability to support the funding needs of the economy.

Dr Gono said the banking institutions would be required to subject themselves to annual external credit rating assessments by credit rating agencies accredited by the RBZ.

The governor also unveiled measures to support the small to medium enterprises sector which would see 30 percent of total loans advanced to SMEs.

Given the current banking sector loans of $3,5 billion as at 31 December 2012, an allocation of 30 percent to the SME sector will translate to loans of  $1,05 billion.

"Given the foregoing banking institutions are required to reorient their portfolios such that loans to the SME sector should constitute at least 30 percent of the total loan book. The Reserve Bank will conduct monthly assessments to monitor compliance and any institution found wanting, will face severe penalties," he said.

Dr Gono said the RBZ was in the process of coming up with credit bureaus, with the completion of the framework targeted for March 2013. The credit bureaus provide information to subscribers about individuals and corporates or any other institutions' creditworthiness.

On the indigenisation of foreign owned banks, Dr Gono said the RBZ was working closely with the Ministry of Youth Development, Indigenisation and Empowerment to ensure that all banks observed the laws of the land and complied in an orderly manner.

"The process to indigenise the banks should, however, take cognisance of the sensitivities around the operation of the banks to restore confidence, trust and stability in the sector".

Dr Gono also expressed concern over the increasing circulation of fake US dollar and South African rand in Harare, Bulawayo and other parts of the country. He urged people and retailers to be on the lookout for such fake notes.




He challenged microfinance institutions, who have been accused of charging high interest rates, to justify their high rates as some of them have been charging rates of up to 33 percent.

"We cannot tolerate that. All microfinance institutions are required to justify interest rates and all other charges levied on borrowed funds as well as adequately disclose their business conditions".

Banks Charges

Source: TC

Is Tsvangirai's BIG TENT leaking?

Yes
20.93%
No
32.56%
Not bothered
46.51%
86

Comments

News Updates

Email:

Latest News

Region 5 Federation Darts Championship: Zimbabwe Retains Championship ...

by Collen Maenda ands Stephen Mwarindira | 20 September 2014 | 98 Views

TB Joshua Condolence Video

by Tebego Motalaote | 20 September 2014 | 271 Views

2 million Zimbabweans in abject poverty - report - AT LEAST two millio...

by Staff Reporter | 20 September 2014 | 488 Views

Jilted Zimbabwean man jailed in UK for ex-girlfriend attack

by Agencies | 20 September 2014 | 832 Views

Man commits suicide over nagging STI

by Staff reporter | 20 September 2014 | 970 Views

'Bulawayo has Mugabe to thank,' says Coltart

by Sikhumbuzo Moyo | 20 September 2014 | 1290 Views

Village head, son kill a man over food aid - A GOKWE North village he...

by Kamangeni Phiri | 20 September 2014 | 539 Views

Prominent doctor ordered to pay $350 maintenance - Dr Nkonzo Ndebele,...

by Lethokuhle Moyo | 20 September 2014 | 747 Views

Bosso desperate to bounce back - After a 0-0 league draw at home to Bu...

by Sports reporter | 20 September 2014 | 472 Views

WhatsApp sells out iPhone thief - 34-year-old Boars Chada, a security...

by Timoth Makohliso | 20 September 2014 | 759 Views

Tsvangirai climbs down after huge setback - MDC-T leader Morgan Tsva...

by Staff reporter | 20 September 2014 | 910 Views

Man in fix for calling wife 'prostitute' - Polygamous Langton Madamom...

by Staff reporter | 20 September 2014 | 753 Views

Grace Mugabe gets another award - THE Philanthropy Institute of Zimba...

by Staff reporter | 20 September 2014 | 724 Views

Synagogue tragedy: South Africans stand with TB Joshua - Messages of s...

by Ihechukwu Njoku - freelance Nigerian journalist | 20 September 2014 | 776 Views

Woman bashed for 'poor cooking' - A 24-YEAR-OLD woman from Chitungwiz...

by Staff reporter | 20 September 2014 | 463 Views

'T.B Joshua is a messiah. He is not a real human being,' claims pastor

by Staff reporter | 20 September 2014 | 1461 Views

MDC, MDC Renewal Team in informal merger talks - MDC's Samuel Sipepa N...

by Marvelous Moyo | 20 September 2014 | 1315 Views

Bulawayo records highest HIV prevalence, new infections - BULAWAYO pr...

by Oswell Moyo | 20 September 2014 | 902 Views

Teachers' qualifications to be verified - US$3 million Teacher Capaci...

by Petros Zivengwa | 20 September 2014 | 1024 Views

Murder suspect accuses relatives of tampering with wife's body - 40-ye...

by Walter Mswazie | 20 September 2014 | 877 Views

Nust suicide attempt: Man taken back home - 19-YEAR-OLD Gabriel Rupap...

by Mpumelelo Nyoni | 20 September 2014 | 997 Views

Kombi driver rapes woman at knife point - A woman was ordered from ...

by Thandeka Moyo | 20 September 2014 | 1417 Views

'Sex sanctions' over adultery lawsuit - A MAN has decided to deprive ...

by Mpumelelo Nyoni | 20 September 2014 | 970 Views

Mysterious human skull found on street - Part of a human skull was ap...

by Loveness Bepete | 20 September 2014 | 816 Views

Man jailed for spearing wife's lover to death - 37-year-old Fanuel Nc...

by Mashudu Netsianda | 20 September 2014 | 692 Views

Three more Zimbabwe universities on cards - Matabeleland South, Mashon...

by Timoth Makohliso | 20 September 2014 | 774 Views

1971 murder mystery solved, but . . . - A MAN and his mother, on their...

by Sydney Kawadza | 20 September 2014 | 1061 Views

Thief strikes at cop shop - A 21-YEAR-OLD man, while performing commu...

by Plaxcedes Hove | 20 September 2014 | 649 Views

Ex-Warriors star stabbed by wife after a fistfight - Lazarus Muhoni, ...

by Elizabeth Chingururu | 20 September 2014 | 1035 Views

Prophet Magaya threatens to sue Obert Mpofu linked newspaper - The Zim...

by Staff reporter | 20 September 2014 | 715 Views

Entertainment

Game over as Generations Soapie goes off air - The South African Broad...

by Staff reporter | 20 September 2014 | 1232 Views

Derick stepping out of Majaivana's shadow - Derick Majaivana, aims to...

by Bruce Ndlovu | 20 September 2014 | 331 Views

Zuma daughter's new soapie to replace Generations - JOHANNESBURG - Sow...

by Staff reporter | 17 September 2014 | 4531 Views

Afrika Revenge reunites - Award winning duo of Willis "Afrika" Kachamb...

by Sophia Chese | 16 September 2014 | 2155 Views

Usandikanganwe - Lady Bee ft Manhanga

by Staff Reporter | 15 September 2014 | 2987 Views

Generations actors agree to go back to work - The 16 Generations stars...

by City Press | 14 September 2014 | 4740 Views

Bulawayo born singer wows X Factor Judges

by Staff Reporter | 13 September 2014 | 3765 Views

Byo singer wins 80K recording deal, duped by sponsors

by Hangoyapalala waTjibundule | 12 September 2014 | 3828 Views
iBlog

Can Too Much Masturbation Hurt Women’s Sex Life? Why Is Excessive Masturbation Bad?

both men and women often enjoy masturbation, and it is a natural sexual action for many people. however, when a woman masturbates too often, she may become concerned that it can hurt her sex life. this question is actually a valid concern, as there ... Read More
adoniadennis 01 March 2014 ago

Protect Your Greatest Small Business Asset: Time

if your work week is way more than 40 hours, your smartphone is glued to your hand, and your to-do list is multiple pages of overdue tasks—you know how valuable every minute of your time is.your smartphone and tablet make doing business from anyw... Read More
Sergey 05 September 2014 ago