Hike in Bank Charges Ugly

I wish to sound disgruntlement with the recent hike of bank charges by banks. So far I haven't found any proper justification why they effected that at a time when the economy is on the decline.

This has a direct effect of reducing citizens' buying power as well a losing trust in the banking system. Therefore, the ripple effect is that, people will shun banking cash as doing so would be to reduce its value drastically after this 50 to 100% hike.

This is part of price distortions which are currently bedeviling our economy. This may result in unnecessary price hikes for nearly all products, particularly basic commodities, which are consumed by all people as retailers may opt to pass the high cost of banking to the consumer. This measure seeded the springboard for price increases, and possible shortages of cash in the mainstream banking sector when dealers refuse to deposit their proceeds daily.

I thought this was time for banks to play its cards well after the sudden emergence of mobile money transfer systems which are posing a forceful threat to their traditional business. Mobile banking is convenient, competitive and accessible to all people across the nation at the moment. This certainly should wake-up banks to retain  the few clients who still engage them for such transactions.

The Banking Association of Zimbabwe (BAZ) is urged to review the measure and hold comprehensive consultative meetings with all relevant stakeholders to avert artificial upset on the banking system and the national economy.

The Reserve Bank of Zimbabwe (RBZ) should play its supervisory role and force banks to reverse this madness.