Banks still opening new accounts

Roberta Katunga, Senior Business Reporter
THE Bankers Association of Zimbabwe has dismissed claims by individuals that some banks were now turning away new clients because of cash shortages saying it was procedural for a bank to refuse to open an account for those customers who may not qualify.

Some sections of society raised alarm alleging that banks, especially the ones which still have a higher daily minimum withdrawal ranging around $200, were now turning away new entrants but a snap survey by this paper revealed that the named banks were still accepting new accounts.

In response to written questions from the Sunday News, BAZ president Dr Charity Jinya said she was not aware of any incidents of banks turning away new clients purely because of cash shortages.

“While banks are actively growing their customer base and driving financial inclusion, it is normal and quite procedural for a bank to refuse to open an account for those customers who may, for various reasons not qualify for a bank account,” said Dr Jinya.

She revealed that banks were also guided by the Bankers Association of Zimbabwe’s Code of Banking Practice.

“It is therefore unlikely that any refusal to open a bank account for any customer is based purely upon a bank’s cash position,” she said.

Commenting on the issue, economist Dr Bongani Ngwenya said it would not make economic sense for banks to decline depositors as that is where they are getting money from especially based on the liquidity problem that the country is facing.

He said although there were some instances where clients were now allegedly abusing facilities and stringent measures had to be put in place, it was not possible to turn away people.

“There was a time when daily withdrawals were further reduced, some banks were getting an influx of people wanting to open accounts with them. Some of these people did not qualify for the accounts they wanted and were turned away while at the same time there were reports of clients abusing the facilities,” said Dr Ngwenya.

For at least two months, Zimbabwe has been gripped by a cash crisis, but what has become worrying is that there seems to be no end to the problem but a worsening situation with some banks reducing the daily withdrawal limit to $50.