Zimbabwe
Banking Act
Chapter 24:20
- Published in Government Gazette
- Commenced on 1 August 2000
- [This is the version of this document as it was at 14 March 2018 to 30 December 2020.]
- [Note: This version of the Act was revised and consolidated by the Law Development Commission of Zimbabwe]
Part I – Preliminary
1. Short title
This Act may be cited as the Banking Act [Chapter 24:20].2. Interpretation
3. Application of Act
Part II – Administration
4. Registrar of Banking Institutions and other officers
4A. Functions of Registrar and other officers
4B. Exercise of functions by Registrar
4C. Adoption of prudential standards of bank supervision
4D. Registrar and Reserve Bank to co-operate with other authorities
Part III – Registration of banking institutions
5. Banking business and banking activities not to be conducted except by registered banking institutions
6. Classes of banking business
7. Banking activities
8. Registration of banking institutions
9. Terms and conditions of registration
Registration shall be subject to such terms and conditions as may be prescribed or as the Registrar, after consultation with the Deposit Protection Corporation, may reasonably determine.[section 9 amended by Act 7 of 2011]10. Registration certificates
Upon registering a banking institution in terms of section eight, the Registrar shall issue the institution with a registration certificate, which shall be in the form prescribed and shall specify—11. Register of banking institutions
12. Annual fee payable by registered banking institutions
13. Amendment of registration
13A. Notification of application
“As soon as reasonably possible after registering an applicant, the Registrar shall inform the Deposit Protection Corporation and cause notice of the registration to be published in the Gazette and in one or more issues of a newspaper circulating in the area in which the applicant’s head office is situated.[section 13A inserted by Act 12 of 2015]14. Cancellation of registration
15. Registration and cancellation of registration to be notified in Gazette and in newspaper
Whenever the Registrar registers a banking institution or cancels its registration in terms of this Part, he shall cause notice thereof to be published in the Gazette and in one or more issues of a newspaper circulating in the area in which the institution intends to conduct its banking business or, as the case may be, has been carrying on its banking business.Part IIIA – Shareholding and control of banking institutions
[Part IIIA inserted by Act 12 of 2015]15A. Limitation on shareholding in banking institutions and controlling companies
15B. Acquisition of significant interest in banking institution or controlling company
15C. Nominee shareholding
15D. Effect of shareholding in contravention of this Part
15E. Divestment of shares to prevent undue influence by shareholder
15F. Restriction on right to control banking institution
15G. Registration of controlling companies
15H. Register of controlling companies
15I. Amendment of registration of controlling company
15J. Cancellation of registration of controlling company
15K. Registration and cancellation of registration of controlling company to be notified in Gazette and in newspaper
Whenever the Registrar registers a controlling company or cancels its registration in terms of this Part, he shall cause notice thereof to be published in the Gazette and in one or more issues of a newspaper circulating in the area in which the company’s head office is situated.[section 15K inserted by Act 12 of 2015]Part IV – Conduct of business by banking institutions
16. Commencement of banking business
17. Conduct of banking and other business
Subject to this Act, every banking institution shall conduct its banking business and other operations in accordance with sound administrative and accounting practices and procedures, adhering to proper risk-management policies, and shall comply with the terms and conditions of its registration and with any directions given to it by the Reserve Bank or the Registrar in terms of this Act.18. Board of banking institution
19. Disqualification for appointment to board of banking institution
20. Principal administrative office and principal officers of banking institution
20A. Responsibilities and conduct of directors and principal officers of banking institutions and controlling companies
20B. Disclosure of interests by directors of banking institutions and controlling companies
21. Banking institution to display its name and fact that it is registered
22. Change of name of banking institution
23. Certain titles and descriptions reserved for use by registered banking institutions
24. Alteration of constitution or rules of conduct by banking institution
25. Amalgamations and transfers of business
26. Closing and establishment of branches in Zimbabwe by banking institutions
27. Establishment of branches, etc., outside Zimbabwe by banking institutions
28. Representative offices of foreign banking institutions
28A. Corporate governance
28B. Compliance function
28C. Risk committee
Part IVA – Consumer protection
[Part IVA inserted by Act 12 of 2015]28D. Publication of certain information by banking institutions
28E. Disclosure of certain information to customers of banking institutions
28F. Customer complaints procedures
28G. Civil penalties for non-compliance by banking institutions with Part IVA
Subject to section 73, a banking institution that fails to comply with any provision of this Part shall–Part V – Financial requirements
29. Minimum capital of banking institutions
[heading amended by section 16 of Act 5 of 2011]30. Minimum reserves to be maintained with Reserve Bank
31. Prescription of further financial requirements
31A. Credit rating of banking institutions
31B. Credit reference bureaux to be licensed
31C. Issue of credit reference bureau licences
Part VI – Restrictions on certain transcations by banking institutions
32. Restrictions on purchase and pledging of shares in banking institutions and controlling companies
32A. Special purpose vehicles
33. Restriction on payment of dividends, etc., by banking institutions
A banking institution shall not pay a dividend or other income to its shareholders unless it has made adequate provision against losses on loans and has taken adequate steps to ensure compliance with Part V.34. Banking institution not to engage in non-banking business without permission
35. Restriction on extending of credit to officers, employees and certain shareholders and their relatives
Part VII – Accounts, statements and other records
36. Accounts and annual financial statement
37. Records of transactions
38. Statements and other documents to be submitted to Reserve Bank and Registrar
39. ***
[section 39 repealed by Act 12 of 2015]Part VIII – Audit committees, auditors and audit
40. Audit committees
41. Appointment of auditor
42. Disqualifications from appointment as auditor
43. Responsibilities of auditor
44. Powers of auditor
Part IX – Supervision and investigation of banking institutions
45. Responsibilities of Reserve Bank
46. Appointment of supervisors and inspectors
47. Powers of supervisors
48. Action that may be taken by Reserve Bank where banking institution found to have contravened Act or condition of registration, etc.
49. Investigation into banking institution
50. Procedure on completion of investigation
51. Action by Reserve Bank following investigation
52. Expenses of investigation
52A. Problem banking institutions
52B. Confirmation of problem bank notice
52C. Implementation of bank resolution plan
Part X – Curatorship and winding up of banking institutions
53. Placing of banking institution under curatorship
54. Effect of placing banking institution under curatorship
55. Duties and powers of curator
56. Freezing of deposits and investments of banking institution under curatorship
56A. Expenses of curatorship
57. Winding up of banking institutions
Part XI – Additional powers of Reserve Bank and Registrar
58. Deposit of approved securities by banking institution against cancellation of registration
59. Loans by Reserve Bank to banking institutions
60. Extension of time-limits
If a banking institution or other person is required to comply within a specified or prescribed period with any direction or requirement of the Registrar in terms of this Act, the Registrar may extend the period at the request of the banking institution or person concerned.61. Translations of documents, etc., may be demanded
Where any person, for the purposes of this Act, submits any statement, document or other information to the Reserve Bank or the Registrar in a language other than the English language, the Reserve Bank or the Registrar, as the case may be, may direct him to provide, at his own expense, a translation of the statement, document or information, and until the person concerned complies with the direction the statement, document or information shall be deemed not to have been submitted for the purposes of this Act.62. Powers of Reserve Bank and Registrar where unregistered person is suspected of conducting banking business
63. Order prohibiting anticipated or actual contraventions of certain provisions of this Act
64. Reserve Bank and Registrar may supply statistics
For the purposes of the Census and Statistics Act [Chapter 10:05], the Reserve Bank and the Registrar may supply the Director of Census and Statistics with statistics relating to banking business and banking activities in Zimbabwe, but no such statistics shall reveal confidential information concerning any particular banking institution or other person.65. Powers of Registrar when determining whether person is fit and proper
Part XII – Deposit protection scheme
66. ***
[section 66 repealed by Act 7 of 2011]67. ***
[section 67 repealed by Act 7 of 2011]68. ***
[section 68 repealed by Act 7 of 2011]69. ***
[section 69 repealed by Act 7 of 2011]70. ***
[section 70 repealed by Act 7 of 2011]71. ***
[section 71 repealed by Act 7 of 2011]72. ***
[section 72 repealed by Act 7 of 2011]Part XIII – General
73. Appeals
74. Requirements for documents submitted to Registrar or Reserve Bank
75. False statements, etc.
76. Preservation of secrecy
77. Use of confidential information for personal gain
77A. Issuance of civil penalty orders
78. Annual reports of Reserve Bank and Registrar
78A. Exemption from liability of Registrar and other persons
No liability shall attach to—79. Exercise of functions by Reserve Bank
80. Evidence and presumptions
81. Regulations
82. Amendment of Acts
The Act specified in each Part of the Schedule is amended to the extent set out in that Part.83. Repeal of Cap. 24:01, transitional provisions and savings
History of this document
31 December 2021 amendment not yet applied
Amended by
Finance Act, 2021
31 December 2020 amendment not yet applied
Amended by
Finance (No. 2) Act, 2020
14 March 2018 this version
Consolidation
01 August 2000
Commenced