Zimbabwe Finance Minister announces Banking Act amendments
Amendments to the Banking Act in Zimbabwe will be complete during the second half of 2012, Finance Minster Tendai Biti has revealed.Amendments to the Banking Act in Zimbabwe will be complete during the second half of 2012, Finance Minster Tendai Biti has revealed.
It is hoped the changes will improve the legal and regulatory environment in the country, as well as tackle specific issues currently being faced by banks, the Herald reports.
Mr Biti explained new laws are required following the ReNaissance Merchant Bank saga in 2011, when the financial institution was placed under curatorship by the Reserve Bank of Zimbabwe after it was revealed it had been abusing depositors' funds.
It also had negative capital of $16.7 million (€12.7 million), compared with the prescribed minimum capital requirement of $10 million for merchant banks.
Mr Biti noted that when this happened, ReNaissance was connected to several enterprises, but there was no law in place to deal with these.
"In the event that the bank collapses, we should have the power to freeze all the companies associated with it," the minister suggested.