Breaking News

Manicaland expresses mixed feelings over scrapping of bank charges

by Staff Reporter
16 February 2013 | 2908 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.


Source: MP


News Updates


Latest News

'Zanu-PF neglecting War vets' - Some veterans of Zimbabwe's war of lib...

by Thomas Chiripasi | 24 November 2015 | 813 Views

Mujuru never attempted to assassinate Mugabe - Former Vice President J...

by Gibbs Dube | 24 November 2015 | 1218 Views

45% of Cowdray Park children out of school

by Staff Reporter | 24 November 2015 | 739 Views

Prophets, Carl Ncube clash over 'distasteful joke' - COMEDIAN Carl Jos...

by Bongani Ndlovu | 24 November 2015 | 1869 Views

Traffic Safety Council of Zimbabwe gives Festive Season warning agains...

by Stephen Jakes | 24 November 2015 | 499 Views

Gunmen rob SA soccer star - A South African soccer star narrowly avoid...

by Stephen Jakes | 24 November 2015 | 3272 Views

Are we now 100% certain that King Lobengula 'died'? - Part 2

by Mthokozisi Ndiweni | 24 November 2015 | 1690 Views

Gura Ra Mwari congratulates Obedingwa Mguni - Guta Ra Mwari has sent a...

by Staff reporter | 24 November 2015 | 2482 Views

Telecel experiences network disturbances

by Thobekile Zhou | 24 November 2015 | 1106 Views

Its Bosso vs Dembare - Easy Call Cup semis

by Thobekile Zhou | 24 November 2015 | 2485 Views

List of Jacob Zuma's 22 children

by parent24 | 24 November 2015 | 6863 Views


by Khumbulani Maphosa | 24 November 2015 | 1141 Views

Dad rapes 2 year old daughter on the sofa - A 60 YEAR old man from Chi...

by Staff reporter | 24 November 2015 | 2452 Views

Mugabe's apologist Vimbai Chivaura dies - Zanu-PF apologist and Univer...

by Thobekile Zhou | 24 November 2015 | 4401 Views

Traffic police leading on corruption

by Suitable Kajau | 24 November 2015 | 2294 Views

MDC Statement on civil service overhaul - The recently approved civil ...

by Kurauone Chihwayi | 24 November 2015 | 2163 Views

Mental patient raped in hospital toilet - A 32 year old general hand a...

by Staff reporter | 24 November 2015 | 1836 Views

Chaos in church as women stamped for 'anointed condoms'

by Staff reporter | 24 November 2015 | 6373 Views

Turkey shoots down Russian military jet - Turkey has shot down a milit...

by Staff reporter | 24 November 2015 | 2965 Views

Chiyangwa ordered to pay back $4 million loan

by Staff reporter | 24 November 2015 | 2581 Views

Bond coins gain popularity as Rand weakens

by Dana Sanchez I AFKInsider newsletter | 24 November 2015 | 1978 Views

Econet shuts down, auctions subsidiary

by Oliver Kazunga | 24 November 2015 | 3985 Views

'Promiscuous man abandons wife, daughter after HIV infection'

by Noleen Makhurane | 24 November 2015 | 3148 Views

Cops demand a $3 'daily passage fee' from every kombi

by Auxilia Katongomara | 24 November 2015 | 3051 Views

Man axed in fight over $1

by Patient Sibanda | 24 November 2015 | 1786 Views

Grace Mugabe moves into Mujuru territory

by Staff reporter | 24 November 2015 | 2750 Views

'No to Mugabe dynasty,' says Biti

by Staff reporter | 24 November 2015 | 1933 Views

Watch: A tour around Solusi University

by Staff Reporter | 24 November 2015 | 1873 Views

Mugabe feels lonely, says Msipa

by Staff reporter | 24 November 2015 | 2856 Views


WATCH: Late Night show's analysis of Zanu-PF factional battles - LATE ...

by Staff reporter | 24 November 2015 | 1617 Views

Pregnancy won't stop me from flying, says Sandra Ndebele

by Bongani Ndlovu | 24 November 2015 | 2466 Views

Frustrated Hosiah Chipanga dumps Zimbabwe

by Staff Reporter | 24 November 2015 | 3444 Views

Miss Rural Goromonzi Crowned - It was a day to remember for the Goromo...

by Stephen Jakes | 24 November 2015 | 849 Views

Heavily pregnant Sandy delays flight for an hour

by Staff reporter | 23 November 2015 | 6615 Views

Eutelsat to speed up Zimbabwe digitisation

by Staff reporter | 23 November 2015 | 1154 Views

P.O Box comedy collapses

by Staff reporter | 22 November 2015 | 2948 Views

Madlela back with a bang

by Vusmann | 22 November 2015 | 2237 Views

Greatsoftline For All Of Your Software Needs

coupon and promo codes: greatsoftline for all of your software needswhile some online sellers have promotional services that reduce the overall amount you spent, others do not .you need to be on the lookout for the best outlets in order to chase th... Read More
ITnews 25 February 2015 ago

Five Reliable Outlook Pst File Repair Tools

Outlook pst files can become corrupted -- and when that happens, work grinds to a halt. if your organization relies on outlook, one of these tools could save the day. outlook is the industry standard groupware tool. let's take a look at five that can... Read More
ITnews 04 May 2015 ago