Published: 30 January 2014

Banks now have to justify and obtain approval from the Reserve Bank of Zimbabwe before effecting increases on charges and lending rates.

Presenting the 2014 Monetary Policy Statement acting RBZ Governor Charity Dhliwayo said this was meant to prevent collusion on pricing and help in evaluating bank charges and related cost structures.

Her maiden Monetary Policy Statement (MPS), presented in Harare yesterday, also set the stage for the return of some of the RBZ's roles, extended banks' capital compliance deadline and contained measures to enhance banking sector stability.

The directive follows the expiry last October of a memorandum of understanding the RBZ signed with banks, after a public outcry over punitive rates.

Banks will be required to upgrade their core banking and delivery systems to promote efficiency and lower charges.

Dhliwayo said this will assist in reducing the cost of delivery, translating to lower charges for the banking public. She said operating should be offset by cost savings from efficient and automated processes.
- herald

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