By Qondile Ntiwane | 2020-02-23

The Central Bank of Eswatini (CBE) wants to re-introduce cash deposit fees for corporates.

This was revealed by CBE Governor Majozi Sithole during the post-budget seminar hosted by the bank at the Happy Valley Hotel and Resort yesterday.

He said this would, however, be negotiable between the bank and corporates, and a maximum charge of one per cent for SMMEs while for individuals were left unchanged with no charge.

“We have recently completed an exercise to revise Legal Notice No. 62 of 2016 on bank charges and the draft amendments of the Legal Notice have been sent to the ministry for gazetting,” he said

Sithole highlighted that the bank was working on legislative reform aimed at ensuring that the financial sector remains sound and abreast of global developments, and the needs of the private sector and consumers at large.

He said the bank had made strides in the revision of the legislative framework.

“The process of reviewing the Financial Institutions Act and the Financial Stability Bill is at an advanced stage. The bank is also developing an institutional framework for crisis prevention and crisis management among the safety net players (i.e. Central Bank, FSRA and ministry of finance),” he said.

The governor added that parallel to that, they were also working on a crisis binder, a document that will detail in depth the steps to be taken in the event that a financial crisis occurs in Eswatini.

The process of reviewing the National Clearing and Settlement Systems Act is also progressing very well.

“With these legislations, the bank is positioning itself to be responsive to the fast evolving financial sector landscape and to be in line with international best practice.

“Furthermore, the bank seeks to strengthen its powers on market conduct and consumer protection for entities under its purview as well as intensify supervisory activities in order to prevent anti-competitive practices and to protect the banking customers from unfair practices,” he said.

He said the bank was also currently conducting a research on how a banks deposit protection scheme can be established in Eswatini in order to protect depositors, especially the public making small deposits.

The governor highlighted that the Speech from the Throne had already set the direction for government.

“Indeed we take heed to His Majesty’s call for dialogue, peace and unity, as we drive Eswatini to first world status.

 Indeed this forum that the Central Bank and the ministry of finance provides annually, has always aimed at providing peaceful and unified dialogue as we deliberate on issues of economic importance in the kingdom.

“We are pleased to provide this platform where you will engage to reflect on the 2020/21 national budget.

 

“We wish to assure you that the government will take all the issues you will raise into account. We hope that the engagement with the honourable minister will trigger some more issues that you may pursue even outside this forum.” he said.

 

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