The Challenges Affecting the Regulation and Supervision of Banks in Zimbabwe
The Challenges Affecting the Regulation and Supervision of Banks in Zimbabwe

Summary/Abstract: The article explores various challenges that are negatively affecting the regulation and supervision of banks in the Zimbabwean financial sector. Such challenges include the adoption of poor bank supervisory approaches, poor bank risk management systems, chronic liquidity problems, poor corporate governance practices, regulatory arbitrage, poor technology in the banks, lack of adequate staff with the relevant expertise in banks, poor cooperation between banks and other relevant authorities, poor capitalisation, poor regulatory approaches, political problems, economic instability and the lack of sufficient financial resources to effectively enforce the Zimbabwean banking laws. The relevant laws include the Banking Act 7 (Chapter 24:20) of 2011, the Microfinancing Act 3 (Chapter 24:29) of 2013, the Bank Use Promotion and Suppression of Money Laundering Act 2 (Chapter 24:24) of 2004, the Deposit Protection Corporation Act (Chapter 24:29) 7 of 2011, the Moneylending and Rates of Interest Act (Chapter 14:14) 9 of 1930, the Reserve Bank of Zimbabwe Act (Chapter 22:15) 5 of 1999, the Building Societies Act (Chapter 24:02) 20 of 1965 and the People’s Own Savings Bank of Zimbabwe Act (Chapter 24:22) 18 of 1999. It is hoped that the relevant authorities will adopt appropriate measures to curb the aforesaid challenges. Accordingly, the article provides some recommendations that could be utilised by the relevant authorities to enhance the regulation and supervision of banks and related financial institutions in Zimbabwe.

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