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Kasukuwere pushes ahead with indigenisation of foreign banks
15 Feb 2012 at 17:49hrs | Views
Minister of Indigenisation Saviour Kasukuwere has demanded that Finance Minister Tendai Biti sign off on the indigenization of foreign banks, leading Biti to join forces with Reserve Bank Governor Gideon Gono to call on President Robert Mugabe to bar the move, which they say would jeopardize a fragile economic recovery.
In a recent letter to Mr. Mugabe, Biti and Gono argued that nationalizing foreign banks could destabilize the financial sector and the economy, adding black Zimbabweans who wish to be players in the sector can apply for new banking licenses.
Foreign-owned banks targeted for indigenisation are Barclays Bank, Standard Bank, Stanbic Bank and Standard Chartered Bank, which together account for a 70%-plus market share. Many indigenous-run banks are under pressure these days.
Biti told reporters that he will resist moves to indigenise banks."Banks that have really been performing well are foreign owned; so it would be very unfair if we were to target them and disturb the banking sector," he said.
But Kasukuwere vowed he will continue pushing for the indigenisation program to extend to the financial sector. "This is the law of the land," he said.
In a recent letter to Mr. Mugabe, Biti and Gono argued that nationalizing foreign banks could destabilize the financial sector and the economy, adding black Zimbabweans who wish to be players in the sector can apply for new banking licenses.
Biti told reporters that he will resist moves to indigenise banks."Banks that have really been performing well are foreign owned; so it would be very unfair if we were to target them and disturb the banking sector," he said.
But Kasukuwere vowed he will continue pushing for the indigenisation program to extend to the financial sector. "This is the law of the land," he said.
Source - voa
