Zimbabwe: Banks agree to reduce banking charges

Feb 04, 2013

Twenty-five Zimbabwean banks signed a Memorandum of Understanding (MoU), pledging to reduce bank charges, it has been revealed.

Twenty-five Zimbabwean banks signed a Memorandum of Understanding (MoU), pledging to reduce bank charges, it has been revealed.

Reserve Bank Governor Dr Gideon Gono made this announcement yesterday (January 31st) while presenting his 2013 Monetary Policy Statement in Harare.

"Zimbabweans across the board have 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 reductions in bank charges," said Dr Gono, quoted by The Herald.

The new agreement sets cash withdrawal, debit card and ledger fees, although their exact amount has not been yet revealed.

This move comes a few months after Gideon Gono criticised banks for the high charges they force small and medium-sized enterprises (SMEs) to pay for services.

He told The Herald in June 2012 that financial institutions were attempting to increase their profits "beyond what is reasonable" by levying high transaction costs on SMEs and other customers".ADNFCR-2976-ID-801533795-ADNFCR