21 April 2014
   
New Zimbabwe Header
How Zim squandered Marange gift
Drunk rivals torpedo ZimAsset: Moyo
I see industries running: Makandiwa
Miner seals tunnel with panners underground
Land grabs threaten last elephant bastions
Britain gone to the dogs: Mugabe
Pictures: Makandiwa’s judgement night
ANC set for two thirds majority: poll
MORE NEWS
Old Mutual: no plans for ZSE listing
Re-engagement key to recovery
MORE BUSINESS
Bulawayo artists miss out on ZITF
New album out this year: Sulu
MORE SHOWBIZ
Caps United drop points
Klopp: Not joining Barca, love Dortmund
MORE SPORTS
What Tsvangirai could learn from Nkomo
Homosexuality not the problem Mr President
MORE OPINION
 
Easter has no bearing on Christianity
Zimbabwe at 34, the naked facts
MORE COLUMNISTS
 
 
Government to tighten bank ownership regulations

21/12/2012 00:00:00
by Roman Moyo
 
Talking regulation ... Tendai Biti
 
RELATED STORIES
Barclays Zim skipped in Absa merger
RTG approves US$4, 5m rights offer
Ups and downs for Tetrad Holdings
Mzembi scoops 3 leadership awards
US$4,8m loss for StarAfrica Corp
Celsys Ltd returns up 65pc
Pick n Pay opens second store in Zim
PGI to dispose of MBD equity

GOVERNMENT is working on amendments to the Banking Act to ensure that no single individual holds more than five percent in a bank, Finance Minister Tendai Biti said Friday.

Issuing a state of the economy update, Biti said there were also considerations to control the amount of money that a bank shareholder can borrow to manage financial institutions liquidity status.

“No individual will be allowed to own shares more than 5 percent in a bank,” Biti said. “As for companies, they will be allowed to have a stake of up to 25 percent.”

Treasury is also working on major amendments to bar shareholders from occupying positions in executive management and the boards of banks.

"That has to stop. If you are a shareholder, go and play golf. Let other people run the bank for you both at management and board level,” Biti said.

The move, Biti added, is meant to transform the banking sector and strengthen corporate governance.

He said the overhaul of the Banking Act would look at oversight, stress tests, and capital requirements if there is need for a review and corporate governance.

Biti said he was expecting the country’s revenue to reach US$3, 9 billion by December 31, adding that some US$247 million had been collected in November alone. The year-on-year figure currently stands at US$3, 5 billion.

“In December we are expecting revenues of about US$400 million,” he said.

Zimbabwe’s total revenues for the third quarter amounted to US$902, 3 million compared to US$771, 1 million in the first quarter and US$825.9 million in the second quarter.

Biti said the country was in line to meeting its December inflation target of 4 percent.

He bemoaned that the country was spending millions on imports, urging more local production.

During the period under review, total imports amounted to US$2 billion compared to US$1, 7 billion recorded in the corresponding period in 2011. This translates to a 17, 6 percent increase.

Most of the imported goods are raw materials, equipment and food stuffs.

In the third quarter, total exports were valued at US$1 billion compared to US$754 million declared in the second quarter, representing a 32,6 percent increase.

“This increase has been largely attributed to the surge in tobacco exports in the third Quarter,” Biti explained.



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark
 
 
 
comments powered by Disqus
 
RSS NewsTicker