News / National
Mugabe chides local banks
14 Dec 2013 at 15:33hrs | Views
President Robert Mugabe on Friday critised local bankers for high levels of indiscipline and theft of depositors' funds which has resulted in some financial institutions being shut down, Zimbabwe New Ziana news agency reported.
Local banks have on many occasions come under the spotlight for illicit dealings at the expense of depositors while failing to support economic activity through provision of loans to critical sectors of the economy, according to New Ziana.
Mugabe told delegates at the 14th Zanu-PF national people's conference that banks should not behave as depositors owed them allegiance.
"Banks must improve their discipline," he said. "They must not steal people's money."
According New Ziana, a number of local banks, with Trust Bank being the most recent one, have been shut down for misusing depositors monies, leaving the owners of the funds stranded.
"Do not touch what is not yours," Mugabe said, while criticising young bankers for misusing their intelligence "to crook" their clients.
"They (bankers) are not fools but they do not know the virtue of respecting that which is not theirs," he added.
The get rich quick mentality, he said, had also resulted in some young bankers stealing depositors' funds.
"There is no African tribe which encourages theft to enrich yourself," he said.
Mugabe said banks should be thankful to depositors for depositing with their institutions.
"Depositors can only be thankful if they (banks) keep their monies well and put interest on the deposits," he said.
The news agency reported since dollarisation, most banks have failed to award any form of interest in on deposits but in turn levying high interests on loans and bank charges for transactions.
Indiscipline resulting in closing of banks by the RBZ is scaring away depositors from keeping their savings in banks preferring to keep them at home.
At the same time most workers are quick to withdraw their wages and salaries once they have been deposited in bank accounts due to fear of what might befall their hard earned funds.
This has resulted in government struggling to promote a savings culture to help drive economic revival.
Local banks have on many occasions come under the spotlight for illicit dealings at the expense of depositors while failing to support economic activity through provision of loans to critical sectors of the economy, according to New Ziana.
Mugabe told delegates at the 14th Zanu-PF national people's conference that banks should not behave as depositors owed them allegiance.
"Banks must improve their discipline," he said. "They must not steal people's money."
According New Ziana, a number of local banks, with Trust Bank being the most recent one, have been shut down for misusing depositors monies, leaving the owners of the funds stranded.
"Do not touch what is not yours," Mugabe said, while criticising young bankers for misusing their intelligence "to crook" their clients.
"They (bankers) are not fools but they do not know the virtue of respecting that which is not theirs," he added.
The get rich quick mentality, he said, had also resulted in some young bankers stealing depositors' funds.
"There is no African tribe which encourages theft to enrich yourself," he said.
Mugabe said banks should be thankful to depositors for depositing with their institutions.
"Depositors can only be thankful if they (banks) keep their monies well and put interest on the deposits," he said.
The news agency reported since dollarisation, most banks have failed to award any form of interest in on deposits but in turn levying high interests on loans and bank charges for transactions.
Indiscipline resulting in closing of banks by the RBZ is scaring away depositors from keeping their savings in banks preferring to keep them at home.
At the same time most workers are quick to withdraw their wages and salaries once they have been deposited in bank accounts due to fear of what might befall their hard earned funds.
This has resulted in government struggling to promote a savings culture to help drive economic revival.
Source - New Ziana
