Synoptical Aspects of the Role-Players in the Regulation and Supervision of Banks in Zimbabwe
Synoptical Aspects of the Role-Players in the Regulation and Supervision of Banks in Zimbabwe

Summary/Abstract: The role, duties and functions of the role-players in the regulation and supervision of banking institutions in Zimbabwe are discussed in terms of the relevant legislation such as the Banking Act [Chapter 24:20] 9 of 1999, the Microfinance Act [Chapter 24:29] 3 of 2013, the Reserve Bank of Zimbabwe Act [Chapter 22:15] 5 of 1999, the Deposit Protection CorporationAct [Chapter 24:29] 7 of 2011, the Bank Use Promotion and Suppression of Money LaunderingAct [Chapter 24:24] 2 of 2004, the Securities Act [Chapter 24:25] 17 of 2004 and the Insuranceand Pensions Commission Act [Chapter 24:21] Act 7 of 2000. Accordingly, key role-players responsible for the regulation, enforcement of laws and the supervision of banks and related financial institutions in Zimbabwe such as the Ministry of Finance, the Reserve Bank ofZimbabwe (RBZ), the Deposit Protection Corporation (DPC), the Securities and Exchange Commission of Zimbabwe (SECZ), the Insurance and Pensions Commission (IPC) and the courts are carefully examined. This is done to explore their adequacy and where possible, recommend some measures that could be considered by the relevant authorities to enhance their role, duties and functions. It is hoped that this approach will enhance the formulation of good monetary policies, the combating of hyperinflation, the maintenance of financial stability, market efficiency, good supervision of banks and related financial institutions and the promotion of public investor confidence. This follows the fact that from the late 1990s to date, Zimbabwe has experienced massive instability of its Zimbabwean dollar currency, rampant bank failures, poor monetary policies, inefficient payment systems, poor bank regulation and supervision and poor public investor confidence. It is against this background that the aforesaid role-players should be discussed to expose the flaws in the bank regulation and supervision laws in order to curb bank failures, bank fraud and other financial crimes in Zimbabwe.

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