Gono will not support chaotic banking sector reforms

The Reserve bank Governor, Gideon Gono, says he would not support a chaotic campaign of expropriation of foreign owned companies, particularly banks, saying he preferred a "gradual approach" to transformation rather than a haphazard campaign, which would wreak havoc with the economy especially banking.

Gono said a measured approach was needed to maintain economy stability and recovery.

"The bank called for a gradual approach where the local-foreign ownership thresholds must be taken and implemented as down-the-horizon targets, as opposed to overnight conversion events on the back of very little personal or national savings available to support the empowerment process," he said.

Meanwhile, local banks have been given a 2-week ultimatum to review their high service charges and interest rates which have seen depositors' funds depreciating instead of appreciating and lowered the country's banking population to only 30%.

Currently, several financial institutions charge between $1 and $3 per transaction and monthly service charges.

RBZ Governor Gideon Gono said this was an aberration he would address urgently. He gave the banks 2 weeks to address the anomalies

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