Breaking News

Manicaland expresses mixed feelings over scrapping of bank charges

by Staff Reporter
16 February 2013 | 3432 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

Could there be war if Grace Mugabe becomes President?

Yes
75.61%
No
8.94%
Who cares?
15.45%
246

Comments

Latest Classifieds (Click Here For More)

News Updates

Email:

Latest News

Mnangagwa escapes death by a whisker - JUSTICE Minister Emmerson Mnan...

by Staff Reporter | 23 October 2014 | 543 Views

Woman launches new political party - A NEW political party, the Afric...

by Staff Reporter | 22 October 2014 | 912 Views

Tillage starts at a slow pace

by Staff Reporter | 22 October 2014 | 847 Views

Salaries dominate govt expenditure - Public sector salaries continue t...

by Staff Reporter | 22 October 2014 | 1343 Views

Gun shot in Canada parliament building - Video

by Staff Reporter | 22 October 2014 | 1217 Views

Veld fires kill nine people

by Staff Reporter | 22 October 2014 | 1667 Views

Man threatens to kill dad over money from rent - A disobedient son wen...

by Staff Reporter | 22 October 2014 | 1743 Views

Dr Simba Makoni Leave Dr Grace Mugabe Alone

by Suitable Kajau | 22 October 2014 | 4204 Views

Msipa demanding answers from Mugabe - HARARE - Respected Zanu PF elder...

by Staff Reporter | 22 October 2014 | 4478 Views

'Grace Mugabe a liar' - HARARE - Opposition leader Simba Makoni has br...

by Staff Reporter | 22 October 2014 | 2902 Views

State must have nothing to fear - Dzamara - Over 150 people today turn...

by Itai Dzamara | 22 October 2014 | 2538 Views

'I saw a vision of me ruling the heavenly kingdom' says Grace Mugabe

by Staff Reporter | 22 October 2014 | 4376 Views

Woman says she steals for a living, Magistrate left speechless

by Leonard Ncube | 22 October 2014 | 2422 Views

Cyclist kills pedestrian - A cyclist has been fined $400 for hitting a...

by Staff Reporter | 22 October 2014 | 1419 Views

Mother of Pistorius's girlfriend insists she did not want 'revenge'

by Staff Reporter | 22 October 2014 | 1665 Views

Uniting the Ndebele People - The Mzilikazi Cultural Association, MCA i...

by Mzilikazi Cultural Association | 22 October 2014 | 1490 Views

'Insecure' man locks wife in bedroom until he returns from work

by Staff Reporter | 22 October 2014 | 3623 Views

Wrong Ndebele spellings in Coca-Cola Ads - After launching its "Share...

by Staff Reporter | 22 October 2014 | 3676 Views

Duo arrested for sodomising boy (10) - A 10-year-old boy has allegedly...

by Staff Reporter | 22 October 2014 | 1943 Views

Update from Africa Unity Square - Live Update - This live update is fr...

by Africa Unity Square | 22 October 2014 | 5125 Views

BREAKING: Cops in riot gear chase people from Africa Unity Square

by Concerned Citizen | 22 October 2014 | 5746 Views

Dr Grace Mugabe's tours breathes hope

by Tawanda Museve | 22 October 2014 | 3366 Views

Matebeleland pressure group - cum political party takes Zanu PF war to...

by Tongai Zwayisa | 22 October 2014 | 3052 Views

Power cuts disrupt Sadc conference in Vic Falls

by Staff Reporter | 22 October 2014 | 1633 Views

Ebola vaccine trials in West Africa by January says WHO

by Staff Reporter | 22 October 2014 | 872 Views

Zimbabwean woman and her 3 children die in horrific car crash in Austr...

by Staff Reporter | 22 October 2014 | 3029 Views

Hail Dr Grace Mugabe

by Tawanda Museve | 22 October 2014 | 3271 Views

Wednesday chat with Auntie Noe - Love and Jealousy

by Nobuhle Virgie | 22 October 2014 | 2008 Views

Entertainment

Zim representative in the Big Brother Africa survives eviction - Zimba...

by Staff reporter | 20 October 2014 | 2302 Views

Grace Mugabe's political comedy takes ZTV hostage - For the past two w...

by Staff reporter | 20 October 2014 | 4596 Views

Oliver Mtukudzi to deliver lecture at Musica 2014 - Zimbabwe's interna...

by Staff reporter | 19 October 2014 | 1310 Views

Gezha maoko - Ladybee (Official Video)

by Staff Reporter | 19 October 2014 | 2287 Views

Matebeleland Music & Arts Festival - Sivala umnyaka ngengoma lapho sit...

by Staff Reporter | 17 October 2014 | 1640 Views

Obediah Matulana releases Christmas DVD - Bulawayo-based musician Obed...

by Staff reporter | 16 October 2014 | 1874 Views

Grace Mugabe honoured in song - Dancehall outfit Final Warning has rel...

by Tawanda Marwizi | 15 October 2014 | 2346 Views

US firm makes money off Zimbabwe concept - United States transport sh...

by Staff reporter | 14 October 2014 | 2945 Views
iBlog

Auslogics Boostspeed 7 - More Powerful And User-friendly Than Ever

Auslogics boostspeed 7 - more powerful and user-friendly than ever!wondering how to fix slow computer performance? experts recommend auslogics boostspeed 7 - the most comprehensive system optimization software! auslogics boostspeed 7 is here!the bran... Read More
ITnews 26 August 2014 ago

Top 10 Causes Of Vaginal Bleeding After Intercourse

bleeding after sex can be rather alarming, and there could be many reasons why a woman would bleed after sex. though most women bleed after their first time having sex, if bleeding becomes frequent, there may be an underlying issue. below are the 1... Read More
adoniadennis 02 May 2014 ago