/ 8 July 2009

Gono slams Zim banks

Zimbabwe Reserve Bank Governor Gideon Gono has slammed some local banks for allegedly holding on to millions of US dollars, the Herald reported on Wednesday.

The money was intended to be used for loans to credible businesses, the newspaper said.

Gono was quoted as saying that by the end of May some banks were sitting on $600-million in deposits and that some banks with as much as $190-million had only lent $2-million.

Gono added that while he was under pressure to crack the whip on such banks, he believed the errant banks should carry out ”self-introspection” to assess their relevance in the national economic matrix.

”These banks need to look at themselves and see whether they are still relevant in the economy.

”We do not want to direct banks on what to do with their funds because we want banks to be free to utilise their funds the way they see fit,” he said. — Sapa