Breaking News

Manicaland expresses mixed feelings over scrapping of bank charges

by Staff Reporter
16 February 2013 | 3038 Views
THE Manicaland Business Community has expressed mixed feelings over the recently announced Reserve Bank of Zimbabwe policy of a substantial reduction and scrapping of bank charges on short-term deposits.




While some described the directive as a milestone which was long overdue since banks were "milking the general populace", others believed the move will destabilise the banking sector, with smaller banks expected to struggle.

The Minister of Finance, Mr Tendai Biti, said no bank charges should be levied on deposits up to a maximum of $800.

He also stipulated that any deposit of $1 000 held over a period of at least 30 days and above should attract an interest of at least four percent per annum.

In his monetary policy statement recently, Dr Gideon Gono, also said the exorbitant bank charges were way out of line with international banking practices.

Over 25 banks and the Reserve Bank of Zimbabwe signed a Memorandum of Understanding in a development that will benefit almost 99 percent of the middle class in Zimbabwe.

Confederation of Zimbabwe Industries national council member and Tanganda (Pvt) Ltd financial director, Mr Henry Nemaire, said the directive to scrap bank charges on deposits which are below $800 was a positive development which was long overdue.

He said the policy would, however, benefit small depositors.

"The reduction is welcome, although it will mainly benefit low income customers who earn an average of between $300 and $500, who are seemingly the bulk of the workforce in Zimbabwe.

"Many will benefit from the move since they will be more disposable income in the hands of the middle class. The corporate sector is therefore yet to see the impact. Personally, I believe it was long over due and we, the business fraternity embrace the policy.
"However, I hope that it is not one of those gimmicks like the price controls. If the two parties agreed mutually, then we are fully behind the initiative," said Mr Nemaire.

Individuals had to part with their hard-earned cash of over $8 in bank charges for the so-called account maintenance fees and other charges.

Economic analyst, Mr Kipson Gundani, said the development was welcome since almost 70 percent of the public will be accessing bank charges for free. He, however, said the move had a negative impact on the smaller banks.

"The directive is a major blow to a bank in small towns and places where most - if not all people - deposit not more than $300. Small banks are surely to suffer.

"Bear in mind that banks also have administrative and operational costs, employees need to be paid. A bank, just like any other business needs to survive. This will compromise the viability of banks to a greater extent.
'Smaller banks will be forced to close in a bid to protect the consumer.

"This is shooting ourselves in the foot. Banks will be incurring costs that need to be covered but from where? since 99 percent of bank services will be free.

"I believe the minister (of Finance) should have made it minimal not to totally scratch it like that," said Mr Gundani.

A banker who requested anonymity blasted the initiative and described it as "unreasonable".

"Common sense should prevail at the end of the day. Banks will collapse and as a result, Small and Medium Enterprises will be greatly disadvantaged.

"A bank in Chisumbanje will surely collapse, literally, because small-scale sugarcane growers keep an account balance of not more than $500, how exactly will we want the bank to continue running?

"Most banks survive because of our money. Our economy is not ticking. If it was, we were going to get extra cash by merely leaving our money in our accounts. Will indigenous banks survive? I wonder," he said.

Manicaland

Source: MP

Comments

Latest News

So what's next for Dynamos? - It is with very sad to be a Dynamos play...

by Lord Morris Kakunguwo, | 29 May 2016 | 759 Views

Watch: 'I Don't Regret What I Did to Mugabe' - I Don't Regret What I D...

by Staff Reporter | 29 May 2016 | 2349 Views

Zanu PF is imploding and Manheru sings a mournful 'Zanu yedu tinoida' ...

by Patrick Guramatunhu | 29 May 2016 | 1051 Views

Mazibisa in Forbes Africa's 30 under 30 Class of 2016 - Nkosana Mazibi...

by Staff reporter | 29 May 2016 | 1073 Views

Thief caught in the act undressed - THIS thug will think twice before ...

by Staff Reporter | 29 May 2016 | 3018 Views

Foreigners flee as looting starts in SA

by Staff Reporter | 29 May 2016 | 4275 Views

Dagga worth R500 000 recovered

by Staff Reporter | 29 May 2016 | 1044 Views

Mujuru under siege - SCORES of alleged Zimbabwe People First (ZimPF) s...

by Staff reporter | 29 May 2016 | 3029 Views

Mnangangwa's ally escapes death - CONTROVERSIAL former Zanu-PF central...

by Staf reporter | 29 May 2016 | 3138 Views

Bosso sink fading Dembare in thriller

by Ishemunyoro Chingwere | 29 May 2016 | 1448 Views

Woman attacks MDC-T for abuse of dead hubby - THE widow of human right...

by Roberta Katunga | 29 May 2016 | 1224 Views

Man stones wife to death - IN a typical Sharia law application, a Gwan...

by Lynnia Ndlovu | 29 May 2016 | 1604 Views

Murder victims family turns down compensation - THE family of three ch...

by Walter Mswazie | 29 May 2016 | 1438 Views

Townsend school bus 'stolen' - DARING robbers last Monday pounced on T...

by Vusumuzi Dube | 29 May 2016 | 1692 Views

Civil servants to sign for payslip - CIVIL servants are now required t...

by Staff reporter | 29 May 2016 | 1490 Views

New town to be built outside Bulawayo - A NEW town is set to be establ...

by Vusumuzi Dube | 29 May 2016 | 3446 Views

Tsvangirai fails to turn up, MDC-T demonstration fails to hit target -...

by Dumisani Sibanda | 29 May 2016 | 1226 Views

Fallen bigwigs appeal to Zanu-PF - SEVERAL senior politicians suspende...

by Staff reporter | 29 May 2016 | 1064 Views

Man rapes lover, forces friend to rape her too while he watches - IN a...

by Tatenda Gapare | 29 May 2016 | 1464 Views

Bosso 90 take on Bantu in explosive derby - TWO former Highlanders pla...

by Raymond Jaravaza | 29 May 2016 | 1196 Views

'We don't get powers from Nigeria,' says Prophet Magaya - FOLLOWING Pr...

by Brian Chitemba | 29 May 2016 | 1147 Views

Harare should learn a thing or two from Bulawayo - Bulawayo City Counc...

by Harmony Agere | 29 May 2016 | 1020 Views

Little Bishop's daughter in gay storm - RETIRED Bishop Desmond Tutu's ...

by Staff reporter | 29 May 2016 | 1094 Views

'I've been invited to Heaven ... again' - Christians will tell you the...

by Wendy Nyakurerwa | 29 May 2016 | 1476 Views

Ghost civil servants flushed out - CIVIL servants are now required to ...

by Lincoln Towindo | 29 May 2016 | 1101 Views

Motorists recount their nightmares with ZRP - Questions sent to Asst C...

by Staff reporter | 29 May 2016 | 1119 Views

Entertainment

Hosiah Chipanga fights in Tuku's corner - Outspoken and talented sungu...

by Staff reporter | 29 May 2016 | 1619 Views

Mtukudzi loses his lustre - The country's harsh economic situation has...

by Staff reporter | 29 May 2016 | 1786 Views

Zim kwaito stars make waves in UK - "We have never been good at follow...

by Showbiz Reporter | 28 May 2016 | 1260 Views

Sandy, Khuliyo show tickets selling like hotcakes - THE Sandra Ndebele...

by Bongani Ndlovu | 26 May 2016 | 2332 Views
iBlog

Apple Watch Teardown Reveals Unique Hardware And Replaceable Parts

The apple watch may not be fine jewelry, but bill detwiler cracks it open and shows you why he thinks it's a fine piece of tech. the apple watch may be beautiful on the outside, but how about on the inside? in this cracking open installment, we go in... Read More
Sergey 11 June 2015 ago

What To Look For In Video Converter Software

looking for the best video converter software? you have to compare different video converters before making a purchase.the ability to watch video on different types of devices is a wonderful thing. not so wonderful are the compatibility issues that ... Read More
Sergey 19 June 2015 ago