Barclays Bank Zimbabwe managing director, George Guvamatanga
ZIMBABWE’S bankers, long criticised for the high bank charges often cited as obstacles to promoting savings and use of plastic money, on Tuesday confessed to overcharging their customers.
The confession, appropriately came at a funding raising business meeting hosted by the Roman Catholic Church.
The controversial bond notes, externalisation and cash shortages were among the topical issues the meeting discussed, but it came as a surprise to most guests when top bankers, in a rare public admission, chastised each other while admitting that current bank charges were against efforts to promote financial inclusion.
Zimbabwe’s banking institutions make the bulk of their profits from bank charges when ordinarily, they are supposed to be making money from interest income, which is their core business. Lending has declined as the economy stalled and defaults rose.
The Reserve Bank of Zimbabwe (RBZ) has had to intervene and force the banks to reduce charges and interest rates on loans.