CCZ hails RBZ proposals

Tendai Nyahuye Herald Reporter
The Consumer Council of Zimbabwe has hailed proposals by the Reserve Bank of Zimbabwe to amend the Banking Act so that shareholders, directors and senior managers of financial institutions who act negligently or fraudulently can be prosecuted. On Monday, CCZ director Mrs Rosemary Siyachitema told The Herald that the proposed amendment would give depositors some measure of confidence in the banking sector.

“In the past few years consumers have had to bear the brunt of their funds disappearing in banks that close shop due to poor corporate governance, insider loans and negligent action by senior managers of banks,” she said.

“We hope that the amendment will enhance transparency in the banking sector and the entire economy and that would deal a blow to speculation and distortion in our economy.”

In her Monetary Policy Statement last week, RBZ Acting Governor Dr Charity Dhliwayo ordered banks to stop issuing insider loans.