Some Reflections on Corporate Governance in the Banking Sector in Zimbabwe

Abstract

During the last quarter of 2003 and the first quarter of 2004, a number of banking institutions in Zimbabwe faced serious corporate governance challenges. By the end of 2004, ten banking institutions had been placed under curatorship, two were under liquidation, and one discount house had been closed. This paper seeks to discuss the nature and scope of the 2003/2004 Zimbabwean banking crisis and several measures which were taken by the Reserve Bank of Zimbabwe (RBZ) in trying to improve corporate governance practice in the Zimbabwean financial sector in the wake of banking crises of such a high magnitude. It begins with a historical background which is followed by case studies on banks which faced corporate governance challenges. It will then discuss how the RBZ responded to this banking crisis and then winds up with a conclusion.