THE Bankers Association of Zimbabwe says the prevailing competition in the banking sector will deter banks from further increasing charges. Some banks have been accused of reverting to high bank charges following the discontinuation of a Memorandum of Understanding which BAZ signed with the Reserve Bank of Zimbabwe in January.
The agreement was meant to put a lid on bank charges as well in as interest rates on loans and deposits. Finance Minister Mr Patrick Chinamasa last week accused some banks of astronomically increasing bank charges.
He warned that Government would “not hesitate to regulate bank charges and interest rates if banks fail to self-regulate.”
But BAZ president Mr George Guvamatanga said stiff competition in the sector meant it was no longer possible for banks to hike charges at will.
“The competition in the market no longer allows anyone to increase bank charges because if you do it, you put yourself out of business,” he said.
“We have not noticed the hike ourselves.”
He said the association, which was self-regulatory, would take measures if any banks were found to have hiked their fees.
Depositors have for long expressed displeasure with high banks charges. Banks are charging at least US$2 per transaction on individual accounts. The institutions are also charging high interests of up to 18 percent per annum on loans while not awarding any interest on deposits.
The MoU came into being following an outcry over high bank service charges from the public but was discontinued in November. — New Ziana