During the hyperinflationary environment, RBZ used financial institutions and other stakeholders’ money immediately preceding the formation of the inclusive Government.
The Reserve bank said the discounted and tradable paper will serve as the security that was lacking for banks to get overnight accommodation from the RBZ and the interbank market.
"The new law also seeks to enhance separate insolvency regimes for dealing with failed banking institutions," said RBZ.
The bank said the proposed laws cover corporate governance and compliance, troubled bank resolution and consolidated supervision.
RBZ said it had instituted a comprehensive financial disclosure framework, which ensures that accurate, meaningful, transparent and timely information is provided by borrowers to investors and creditors.
Proposals by RBZ come at a time when the financial sector is facing numerous challenges, although it has remained stable since dollarisation.
The prevailing liquidity risk has exposed many banks still dealing with liabilities incurred during the past 10 years of economic depression.Post published in: News