mushayavanhu bankers ass 03.08.10.jpgThe Bankers Association of Zimbabwe (BAZ), has dismissed fear of a financial crisis following the Renaissance scam and described the development as an isolated case without any major implications on the whole industry.

The local banking industry which is slowly emerging from the woods following a period of depressed deposits and lack of confidence in the sector recently witnessed yet another corporate governance deficiency case as Renaissance Financial Holdings Limited, RFHL was involved in abuse of depositors’ funds.

While the development has raised alarm in certain quarters amid fears of yet another financial crisis, the banking industry representative body BAZ has dismissed fears of a banking industry collapse.

In a telephone interview with ZBC News BAZ President, Mr. John Mushayavanhu who acknowledged poor corporate governance on the part of Renaissance said there is no reason for depositors to panic as the incident has no major bearing on the whole industry.

Observers and economic analysts however feel there should be a widespread investigation by the Reserve Bank of Zimbabwe on the whole industry as they might be gross abuse of depositors’ funds by other players in the local financial services sector.

Between 2003 and 2004, the local banking industry witnessed a wave of gross abuse of depositors’ funds with financial institutions engaging in unscrupulous conduct.

Reserve Bank of Zimbabwe Governor, Dr. Gideon Gono cracked the whip and placed several banks under curatorship.