Established 1930 Banks should inspire public confidence

THE banking sector plays an important role in the economy of any country as it is the intermediary or go-between in the financial industry. Banks are financial institutions where people can safely deposit their savings, which under normal circumstances are supposed to be rewarded with interests.

As banks attract savings and at the same time give out credits in the form of loans, then they are the oil for the wheels that keep the economy running.

However, the same cannot be said of Zimbabwe’s banking sector which has for some time been accused of not levelling the playing field when it comes to the way it does its business.

The situation of our banking sector had improved significantly after the economic challenges of 2008 but the depositors have not been charmed by what is happening considering the numerous charges they are slapped with time and again by their banks.

For some time depositors have been accusing the banks of ripping them off through repeat fees and charges levied on a series of withdrawals. The situation has been worsened by the persistent cash shortages as the transacting public is being forced to make regular visits to the banking halls to withdraw their hard earned cash and every time they do so they have to contend with some charges.

Because of the cash shortages affecting the country, banks have been forced to reduce the maximum withdrawals per day to a measly $40 and that calls for more trips to the banking halls by members of the public.

It is against this background that we welcome statements by the Reserve Bank of Zimbabwe Governor, Dr John Mangudya that the Central Bank is working on reducing bank charges and withdrawal fees in response to a national outcry from the transacting public. Our sister paper, carried a story in its Saturday edition where Dr Mangudya was quoted as saying the Central Bank was aware of the concerns of the transacting public and measures to protect depositors would be announced soon.

“Indeed we are working on reducing the bank charges to ensure that banking services are not punitive and that they promote financial inclusion,” said Dr Mangudya.

The words of Dr Mangudya are sweet music to the ears of members of the public who for long have been screaming their voices hoarse because of the unfair treatment they have been subjected to by the banking sector through those numerous charges. Also according to

story for one to withdraw $75, which is made up of $50 and $25 in bond notes, he or she has to part with $5,50, quite a substantial amount for an ordinary citizen.

That is in addition to monthly service charges of $5 or more. With such charges it is our view that banks are treating their customers unfairly.

We call upon the banks to stop this unfair practice of profiteering at the expense of members of the public, they should take into consideration the economic climate that the country is going through.

While banks are quick to slap their customers with those punitive service charges they seem reluctant to factor interests to the accounts of the depositors. Instead of accruing interests in their accounts the customers are hit with unreasonable and painful service charges.

We seek to advice the banks that if they keep on coming up with those unreasonable service charges they are playing a dangerous game, which is discouraging members of the public from doing business with them.

Sooner or later there is going to be very few deposits into the banks, what with the current shortages of cash. People will find it better to keep their cash outside the banking system.