FINANCIAL institutions have come under fire for unilaterally hiking bank charges in unclear circumstances and at a time when the country is battling economic challenges fuelled by the liquidity crunch. OWN CORRESPONDENT
Banks such as EcoBank, NMB and CBZ have hiked charges on the electronic fund transfers (RTGs) by 100% plus 0,05 cents for the government levy.
EcoBank is now charging $5, NMB $4 from $1,60 and CBZ is now charging $4 from $2.
Banks unanimously agreed to increase cash withdrawal charges under the Zimswitch platform by 50% from the current $2, starting from next month.
Business lobby groups canvassed by the Southern Eye Business yesterday expressed concerns over the skyrocketing bank charges saying they were unjustifiable especially in a non-inflationary environment like in Zimbabwe.
“What financial institutions are doing is criminal and should not be allowed. Banks are ripping off people and it is forcing lot of companies as well as individuals not to bank, hence encouraging people to do fraud,” Affirmative Action Group vice-president Sam Ncube said, adding that the former Finance minister, Tendai Biti once said banks were powerful than the government because they could do whatever they wanted.
Association for Business in Zimbabwe chief executive officer Lucky Mlilo said it was hard to do business because of high bank charges made by financial institutions.
“As the organisation we are very concerned about these bank charges made by financial institutions. We are saying banks should not kill the goose that lays the golden egg,” Mlilo said.
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He pleaded with the Competition and Tariffs Commission to intervene.
Bankers’ Association of Zimbabwe (BAZ), chief executive officer Sijabuliso Biyam said banks should justify their charges to the central bank and they should inform their clients.
“Each bank has to justify its charges to the central bank. However, as BAZ we cannot regulate banks because each bank has its profile.
“What we do is to ensure that charges are justifiable. Regulations require that banks should display their conditions for the view of the customers,” Biyam said.
Business lobby groups said the economic situation in the country was hard enough without doubling the banks charges.
Zimbabwe has 19 operating banking institutions, comprising 15 commercial banks, one merchant bank and three building societies, as well as one savings bank and 156 microfinance institutions.
