Published: 31 January 2014

Bank directors and shareholders who abuse depositors' funds risk prosecution and going to jail in terms of amendments proposed in the Banking Act, the Reserve Bank has said.

Presenting the 2014 Monetary Policy Statement in Harare on Wednesday, acting RBZ Governor Charity Dhliwayo said the bank was working with Government to effect the proposed amendments.

Key elements of the amendments include the introduction of provisions that subject bank directors, senior managers and shareholders who act negligently or fraudulently to civil and criminal liability.

The RBZ said it will issue an enhanced fit-and-proper-person assessment framework setting out the parameters for fitness and probity assessments of baking institutions' senior management.

The amendments mooted in the Banking Act come amid revelations that directors, senior managers and shareholders of banking institutions account for most of banks' non-performing loans.
- herald

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