“The central bank should be recapitalised because we are not receiving any financial support from it. If the central bank is recapitalised it will help the banking sector in offering long-term loans as it will help to support banks,” said the president of the Bankers Association of Zimbabwe, John Mashayavanhu. Last month, Industry and Commerce Minister Welshman Ncube criticised the
banking sectors’ interest rates, which he said were way above the average Southern African Development Community averages.
He said the banking sector was charging high interest rates on its loans while charging low rates on depositor’s money in the banks. “Deposits are not stable. Most of the money that is in the banking sector is for paying salaries, while those depositing their money were only depositing it for 30 days,” said Mashayavanhu.
President Mugabe signed the Reserve Bank of Zimbabwe Bill into law a fortnight ago, which will see a number of administrative changes at the central bank. For example, the central bank will be focusing on its core business of monetary policy formulation, stabilising the local currency and supervision of financial institutions.Post published in: Economy