Zimbabwe Reserve Bank Governor criticises bank charges

Jun 01, 2012

Zimbabwe's Reserve Bank Governor has criticised banks in the country for the high charges they force small and medium-sized enterprises (SMEs) to pay for services.

Dr Gideon Gono said that financial institutions are attempting to increase their profits "beyond what is reasonable" by levying high transaction costs on SMEs and other customers and outlined his plans to halt the practice, the Herald reports.

Carrying out "rigorous" supervision of the banking sector is one of the Reserve Bank's key functions and speaking at a Parliamentary Portfolio Committee on SMEs, Dr Gono explained he intends to issue a directive forcing banks to ensure the fees they charge are not excessive.

"I am going to tell the banking sector [to] make a choice," he remarked, noting banks can "agree voluntarily on reasonable amounts" to charge and not apply fees to accounts where no transactions have taken place.
The alternative is to "give [depositors] back their money in full" if banks do not want to provide interest, he explained.ADNFCR-2976-ID-801377567-ADNFCR