Gono calms banking sector

Comment & Analysis
BY OUR STAFFRESERVE Bank of Zimbabwe (RBZ) governor Gideon Gono said yesterday there won’t be any changes to the bank’s stance on empowerment unless the laws governing the banking sector were changed. 

Gono’s remarks were designed to calm the nerves of the banking industry in the face of an onslaught by proponents of indigenisation.

National Indigenisation and Economic Empowerment Board chairman, David Chapfika, was quoted last week as saying foreign banks had a July deadline to submit proposals on how they would comply with the Indigenisation Act.

Youth Development, Indigenisation and Empowerment minister, Saviour Kasukuwere, told a Zanu PF economic cluster meeting on Thursday that his ministry was in advanced discussions with foreign banks regarding their empowerment programmes.

“Until the Banking Act is amended, the process, unlike in other sectors, will be a consultative and inclusive one, involving the banking institution itself, the ministry responsible for indigenisation and the Reserve Bank of Zimbabwe. It’s that plain and simple,” Gono said yesterday.

Gono said RBZ wondered whether participants in bilateral discussions were aware that the central bank had to approve the results of any discussions as required by-law, “something we have not done yet”.

Gono said the Banking Act mandated RBZ to oversee the banking sector.

He said Section 26 of the Banking Act specifically gave RBZ the right to oversee the section.

Gono said sub sections 5, 6 and 7 of the same section, are self-explanatory to those interested in the banking sector.

“All we are saying is that much as the indigenisation of the banking sector is essential, the banking sector was deemed by lawmakers to be special and sensitive as to require additional checks and balances in terms of any changes to the ownership of any bank or financial sector and what this means is that no authority can change that ownership structure and make it effective without the concurrency of the Registrar of Banks and Financial institutions, who is under the Governor,” Gono said.

There are seven foreign-owned banks out of 24 operating institutions in the country. This has lent credence to the notion that the sector is highly indigenised.

Critics of indigenisation have said the banking sector is sensitive and their cautious approach should have been vindicated following the recent closure of two locally-owned banks, Genesis and Interfin.