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(NEWZIMBABWE) Nothing sensitive about banks: Kasukuwere

COMMENT - What did the founding fathers of the US have to say about the foreign ownership of their banks? Minister Kasukuwere: " “They are also resisting pressure to lend to our companies so that we grow the economy and create jobs for our people. “These banks have serious attitude problems and that is why the ownership law is necessary; and it will be implemented.” " Slowly, the Zimbabwean government is dismantling the infrastructure of neocolonialism.

Nothing sensitive about banks: Kasukuwere
Resistance ... Finance Minister Tendai Biti and Reserve Bank Governor Gideon Gono
15/03/2012 00:00:00
by Gilbert Nyambabvu

FRESH from facing down the world’s second biggest platinum miner, Empowerment Minister Saviour Kasukuwere has brushed aside reservations from cabinet colleagues and insisted that foreign banks must now comply with the country’s ownership laws.

Impala Platinum (Implats) this week agreed to give up 51 percent of its Zimbabwe operation, Zimplats, in what was seen as a key victory for Kasukuwere who is leading the government’s economic empowerment drive.

And buoyed by Implats' eventual surrender, Kasukuwere has now said focus will turn to the country’s financial services sector which is dominated by the British-domiciled Standard Chartered and Barclays banks as well as the South Africa-owned Stanbic.
However, he faces resistance from cabinet colleagues and central bank governor, Gideon Gono.

Said Finance Minister Tendai Biti recently: “There is no need for one to take over a commercial bank. If you want a bank come to me as the Minister of Finance and (central bank chief) Gideon Gono and we will give you the licence to start a bank.”

Addressing local business leaders in Bulawayo, Gono added: “Banking is a sensitive area which should be left alone. Indigenising those banks will make life more difficult for the people.”

But Kasukuwere told New Zimbabwe.com that he would ensure the country’s laws are implemented, adding that those with reservations should have changed legislation when it was enacted several years ago.
“What is sensitive about banks? The law is also sensitive,” he said.

“People should stop dreaming. We can have personal opinions but they should remain just that. We cannot, as leaders, be seen to be undermining the same laws we have enacted through parliament.”

Gono, who has over the years shut down several locally-owned banks over management and capitalisation problems, is concerned that indigenisation could further distabilise a key economic sector.

According to information from the RBZ, foreign-owned banks have healthy capital positions while the locally-owned institutions barely meet the minimum capital requirements.
“If you have an appetite for banking, please come to us with your whole family or clan,” Gono said in Bulawayo.

“We will issue you with the licence to start your own bank provided you have the initial capital of US$12.5 million. Why should people want to have shares in a bank for nothing?”

However, Kasukuwere said he was surprised that leaders were trying to protect institutions they blame for worsening liquidity problems in the economy by keeping large amounts of money outside the country.

“This is our money that we are talking about,” he said.

“No British bank brought British deposits to Zimbabwe. This is money which belongs to our people. I cannot understand leaders who defend banks that are working against the aspirations of our people.

“We have been struggling with liquidity problems and these banks have been keeping huge amounts of money outside the country.

“They are also resisting pressure to lend to our companies so that we grow the economy and create jobs for our people.

“These banks have serious attitude problems and that is why the ownership law is necessary; and it will be implemented.”

Labels: BANKING, NEOCOLONIALISM

posted by MrK @ 6:41 PM