Speaking to the media on the side-lines of the party’s recent policy conference. Biti said only 19 percent of Zimbabweans were making use of banking services.
“People have lost money in the banking system and bank closures drained any confidence people might have had in the system. We don’t want systematic bank failure in the country,” said Biti, adding that mobile banking services could solve part of the problem.
He said once in government, the MDC would enact a law requiring banks to be listed on the stock exchange to improve their liability.
Biti also said the Indigenisation ministry was not following its own regulations. “We have made it clear that according to the ministry’s own regulations indigenisation can only be done in consultation with the line ministry and for banks that means the ministry of finance,” he said.
The indigenisation of banks did not make any sense as this was a sector with a high participation of locals already, he added. “Out of a total of 21 banks only three are not indigenous. So is this not a case of a sector that is over indigenised.” ?.
The issue of banks and indigenisation has also pitted the responsible minister, Saviour Kasukuwere, with Central Bank Governor Gideon Gono.
Gono wants the sector left alone, saying any attempts to forcibly acquire equity would have severe repercussions while Kasukuwere has questioned the governor’s intentions in “protecting” the banks.
Barclays Bank has been reported to be in talks with Kasukuwere on the issue while Standard Chartered Bank has already been threatened with closure for non-compliance. Another foreign owned bank being targeted is Stanbic.
Post published in: Business