Zim banking sector set for major reforms

Zim banking sector set for major reforms
Published: 10 June 2013
Zimbabwe's banking industry is set for major reforms in line with new banking regulations that are expected to be operational next month.

In terms of amendments to the Banking Act, shareholders of financial institutions will be held accountable for the collapse of banks.

The proposed Banking Bill is also among other factors expected to solve corporate governance issues, facilitate the reduction of bank charges and protect depositors' funds from abuse by shareholders.

Members of the public said the new banking regulations are likely to restore depositors' confidence after the collapse of some banks in the past 18 months.

Banks are failing to attract depositors owing to high charges and poor returns leading to more than US$3 billion circulating outside the formal banking channels.

However, it is being anticipated that amendments to the Banking Act will increase viability for financial institutions.
- zbc
Tags: banking,


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