International Best Practices and Related Aspects of the Regulation and Supervision of Banks in Zimbabwe
Keywords:
banks, regulation, supervision, guidelines and best practicesAbstract
There are various organisations that provide international best practices and guidelines for the regulation and supervision of banking institutions globally. These best practices and guidelines provide recommendations on how banks should conduct their business to, inter alia, promote deposit insurance and deposit protection for the benefit of all financial consumers. For the purposes of this article, selected international bodies and/or organisations that provide some recommendations to enhance the regulation of banks in Zimbabwe, such as the Basel Committee on Banking Supervision (BCBS), the Financial Stability Board (FSB), the International Monetary Fund (IMF), the Committee on Payments and Market Infrastructures (CPMI), the International Association of Deposit Insurers (IADI), the Financial Action Task Force (FATF), the Central Bank Governance Forum (CBGF) and the Committee on the Global Financial System (CGFS) are discussed. The bodies provide some recommendations that could be utilised to curb various challenges that affect banks globally. In Zimbabwe, such challenges include the poor assimilation of technology in banks, the lack of adequate staff in banks with the relevant expertise and the lack of sufficient financial resources to effectively enforce banking laws. Accordingly, it is submitted that the relevant authorities should utilise the recommendations that are developed by the stated international bodies to improve the regulation and supervision of banks and related financial institutions in Zimbabwe.
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