WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2010-08-02 Time: 18:00:02 Posted By: News Poster
RESERVE Bank of Zimbabwe (RBZ) governor Gideon Gono last week blasted some banks for levying high charges to sustain “utopia-style packages” for their management.
He warned that the central bank would be forced to intervene if the situation was not addressed.
The warning comes hard on the heels of calls by Finance minister Tendai Biti for banks to raise the rates on deposits which he said were too low.
Biti’s assessment of the banking sector was seen as a signal that authorities were losing patience with the sector.
In his mid-term monetary policy review statement on Thursday, Gono said his office had been inundated with concerns from various stakeholders against the high charges.
Gono said the scenario where management at banks “in some institutions get paid and live like angels while their own financials are suggesting otherwise cannot be sustained.”
“The banking corporate and individual sectors cannot therefore be made to sustain utopia-style packages that do not reflect the banks’ core income streams benchmarked on reasonable charges and normal trading activities,” he said, warning that the RBZ would intervene if its warning was not heeded.
“We do not wish to be dragged to the extreme point where there will be no option but to prescribe limits on bank charges.
“Indeed, such a day will regrettably be a dark one as our economy remains steadfast in allowing the virtues of market forces to flourish in the interests of both allocative and productive efficiencies,” Gono warned.
He said the mismatch between lending and deposit rates needed to be addressed.
Lending rates are high and range between 12%-18%. Deposits rates attract a paltry 2% interest per annum thereby discouraging savings.
Gono said all banking institutions must with immediate effect post on visible boards, their explicit conditions of service, covering deposit and lending rates, as well as all other banking charges.
“The mandatory publishing of each bank’s conditions of service will ensure that banks do not penalise borrowers through extractive charges and interest rates that are unrelated to fundamentals,” he said.
Yet there were some cheers from banks after RBZ scrapped the statutory reserves with immediate effect to improve the liquidity in the system.
From February 1, statutory reserves were 5%, the RBZ was keeping 2,5% and the remainder (2,5%) was being kept in an offshore bank authorised by the central bank.
Gono said the RBZ had been “capacitated with a modest seed fund to resume its lender of last resort function” and the detailed operational modalities would be circulated to the banking sector.
Since the introduction of the multiple currencies, banks were operating in the absence of a lender of last resort thereby exposing institutions to risks in the event of problems.
Original Source: 
Original date published: 31 July 2010
Source: http://allafrica.com/stories/201008021250.html?viewall=1