In his first public address on the monetary policy since the introduction of multi-currencies, Gono said the central bank welcomes new players into the financial sector and would issue licences if they met the minimum capital requirements.
“. . . the financial sector continues to invite new entries and those who wish to own banks and those who wish to be players in the sector can apply for new banking licences. We will be happy to give them as long as they comply,” Gono said.
The move is set to draw sharp criticism from the Youth Development, Indigenisation and Empowerment ministry, which views Gono as the stumbling block to the implementation of the indigenisation programme in the financial sector.
Analysts have raised the red flag arguing there was need for caution when approaching the delicate financial sector, the bedrock of the economy.
As at December 31 last year, there were 26 operational banking institutions (including POSB), 16 asset management companies and 157 micro-finance institutions under the supervision of RBZ. However, the big banks account for over 70% of the market share, leaving smaller banks, in particular those that are indigenously owned, to scramble for crumbs.
On Tuesday, Gono said there should be mergers and acquisitions and some smaller banks had no basis for continued existence on the market.
“The idea of clinging onto ownership structures which have no meaning or capacity should just go because you will be swept under with your 100% ownership,” Gono said.
