BoZ urged to rethink prohibition of bank charges

The Bank of Zambia (BoZ) has been called upon to rethink its directive to banks  to prohibit the imposition of unwarranted bank charges.

Former Zambia Union of Financial Institutions and Allied Workers (ZUFIAW) president Cephas Mukuka has warned that the directive by the Central Bank will have a drastic negative impact on the banking sector.

Dr. Mukuka, who is also a banker notes, that besides affecting expansion, conditions of services and salaries in the banking sector will be affected.

In a walk -interview with QTV News Dr. Mukuka notes that, in his view, what the BoZ should have done is to instead reduce the said prohibited bank charges to as low as 60 percent.

Dr. Mukuka says this is because banks survive on commissions and charges which the Central Bank has stricken off.

He states that his projection therefore is that in the next 12 months the negative impact of the BoZ’s directive will have been felt.