ZIMBABWE Stock Exchange (ZSE) chief executive officer Emmanuel Munyukwi has called on the Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono to give up
control of non-financial institutions, saying these should be regulated and supervised by institutions other than the central bank.
Munyukwi told journalists at a recent workshop on financial reporting that Gono should relinquish control of asset management companies, the banned money transfer agencies, microfinance institutions, and others and concentrate on supervising the banking sector.
He said under normal circumstances, non-banking financial institutions should be regulated separately to ensure effective supervision.
“This is the only country in the world where the central bank controls non-banking financial institutions,” Munyukwi said.
“In Zimbabwe the central bank closes asset management companies. In my opinion this is not correct,” Munyukwi said.
Gono, whose central bank controls and supervises the financial sector, has largely blamed financial institutions for spawning a financial crisis that has disrupted the normal functioning of the country’s economy over the past three years.
A raft of measures put in place to restore normalcy in the economy have resulted in the closure of at least 15 financial institutions since 2004 and the banning of money transfer agencies and the transfer of asset management supervision and money lending companies to the central bank.
However, these measures have failed to restore confidence in the economy and spark the turnaround Gono was tasked to spearhead when he was appointed governor in December 2003.