RESERVE Bank of Zimbabwe (RBZ) governor Gideon Gono on Thursday warned the government against effecting empowerment laws on foreign banks, saying that would be the final nail in the struggling economy’s coffin.

Gono said locals who itch to own a bank must apply for a licence from the central bank to enable them to have their own financial institutions that they would own 100 percent.

The country's indigenisation regulations, which came into force on March 1, stipulate that locals must have 51 percent shareholding in all foreign-owned companies.

“Banking is a unique field that requires unique structures,” Gono said in an interview published in the Financial Gazette. “Some people would want to mischievously equate and interpret the land reform type of indigenisation as the one that should, must and could be applied to other sectors of the economy.

“Well, that would be the final nail to this economy and nothing of that nature should be allowed.”

Gono appeared to signal he would defy the law, stating that “... Stanbic, Barclays Bank, Standard Charted, MBCA and CABS will not see the central bank seeking to dilute or disrupt current shareholding unless of course if it is a voluntary manifestation of their own internal strategic planning."

Gono, whose tenure is being challenged by Prime Minister Morgan Tsvangirai’s MDC party, said his relations with Finance Minister Tendai Biti had improved after bruising battles between the two men since a power sharing government was formed a year ago.

Gono admitted in the interview he had limited his exposure in the media, adding: “I have agreed with my principals that under the new mandate of the central bank, our various pieces of advice will be given behind the scenes and more directly to the relevant arms of government.

“My Minister of Finance is very happy with this new way of doing business."