Don't panic, depositors urged

HARARE – The Bankers Association of Zimbabwe (BAZ), has dismissed fear of a financial crisis following the Renaissance scam and described the development as an isolated case without any major implications on the whole industry.

The local banking industry which is slowly emerging from the woods following a period of depressed deposits and lack of confidence in the sector recently witnessed yet another corporate governance deficiency case as Renaissance Financial Holdings Limited, RFHL was involved in abuse of depositors’ funds.

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While the development has raised alarm in certain quarters amid fears of yet another financial crisis, the banking industry representative body BAZ has dismissed fears of a banking industry collapse.

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In a telephone interview with The Zimbabwe Mail, Mr. John Mushayavanhu who acknowledged poor corporate governance on the part of Renaissance said there is no reason for depositors to panic as the incident has no major bearing on the whole industry.

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Observers and economic analysts however feel there should be a widespread investigation in the operations of the Reserve Bank of Zimbabwe and the whole banking industry amid reports that the Reserve Bank Governor is redirecting funds into the black economy through operations carried out by loans sharks who are lending money to banks and the Central Bank Governor passes on confidential information to these so called sharks who in turn call in their loans squeezing the bank owners into cash crisis.

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