United States of America ambassador to Zimbabwe, Brian Nichols has called for continued efforts in maintaining transparency within Zimbabwe’s financial sector.
Speaking when he reviewed economic and financial issues with the Bankers Association of Zimbabwe recently, Nichols said an effective financial sector is key to economic development.
As such, he encouraged continued efforts to promote greater transparency and efficiency in the Zimbabwean financial sector.
Zimbabwe’s financial services sector continues to be found falling short in terms of observing corporate governance principles.
The majority of the problems dogging the sector are due to the existence of a number of regulatory bodies regulating the components that make it up.
It is for that reason, the country crafted the National Code of Corporate Governance (ZimCode), clearly spelling out what constitutes the financial services sector in Zimbabwe, specific requirements for governance in order to bring sanity to it.
Zimbabwe’s financial services sector comprises of financial banking and non-financial banking institutions.
The type of institutions that fall under these two major categories does not differ from what constitutes the financial services sector in other countries, but what differs is the way the sector is regulated and supervised thus making Zimbabwe’s financial services sector sophisticated.
The ZimCode is driven by the desire to embrace good corporate governance practices in Zimbabwe. It takes into account the Zimbabwe’s unique socio-economic and political environment and recognises that, “one size does not fit all”.
The ZimCode aims to minimise corporate collapses and instill discipline within the business sector by establishing minimum standards for corporate leadership. It raises the bar on corporate governance above legal stipulations on the concept.