The governor of the Reserve Bank of Zimbabwe has urged banks to reduce their charges following repeated complaints that they are excessive.
“The banking sector has come under heavy scrutiny and criticism for high bank charges and fees,” John Mushayavanhu said in a letter dated January 29 to the lenders. “In this regard, the banking sector is implored to urgently come up with reduced fees structures and reward savings especially under the prevailing low inflation” environment, he said.
The letter was in line with the government’s push to make it easier to do business, and the request for banks to reduce high fees followed “perpetual complaints,” Mushayavanhu said in an interview. “Banks, through the Bankers Association of Zimbabwe, have submitted proposals which we are currently reviewing.”
While Zimbabwe was once synonymous with hyperinflation, price pressures have eased due to tighter monetary policy, restrained fiscal spending and the introduction of the new ZiG currency that’s backed by gold and foreign reserves. The annual inflation rate fell to 4.1% last month from 15% in December.
Zimbabwe has 17 registered commercial banks. Fanwell Mutogo, the banking association’s chief executive officer, said he was unaware of Mushayavanhu’s circular.
Bloomberg
