Chinamasa warns financial institutions

Government has warned banks and other financial institutions against engaging in "unethical standards and practices" such as charging depositors for opening bank accounts, as Treasury seeks to create a savings culture.

This comes as the central bank has reported a trend of deposits skewing more to short-term deposits.

Finance minister Patrick Chinamasa said banks and financial institutions could not expect to encourage savings with levies or extra charges on new accounts.

Chinamasa said such practices have also hindered government's drive to formalize the informal sector.
 
Meanwhile, microfinancier Microcred Zimbabwe is targeting the unbanked and those in the small to medium enterprises (SMEs) offering loans ranging between $150 and $50 000.

Currently, 70% of the adult population is unbanked while there are 5,7 million SMEs in the country, according to a 2014 Finscope survey.

Microcred Zimbabwe acting chief executive officer, Lloyd Borerwe said on Tuesday that any business that has operated for at least a 12-month period qualified for financing.