Friday 8 July 2011

CONSUMER UNITY AND TRUST SOCIETY (CUTS) INTERNATIONAL EXPRESSES WORRY AT THE LOW COMPETITION LEVELS IN THE ZAMBIAN BANKING SECTOR

CONSUMER UNITY AND TRUST SOCIETY (CUTS) INTERNATIONAL HAS EXPRESSED WORRY AT THE LOW COMPETITION LEVELS IN THE BANKING SECTOR.
CUTS INTERNATIONAL ACTING CENTRE COORDINATOR SIMON NG’ONA SAYS THIS DESPITE A PROLIFERATION OF BANKS AND BANKING PRODUCTS AND SERVICES SUCH AS ATMS, MOBILE BANKING ETC WHICH ON ONE HAND IT HAS SAID STEERS NON PRICE COMPETITION.
MR NG’ONA SAYS A SNAPSHOT OF THE BANKING SECTOR SHOWS THAT THERE IS AN AVERAGE OF ABOUT 18 BANKS TO DATE OF WHICH 4 OR 5 ARE BIG BANKS BASED ON THE CURRENT TRENDS WITH AN AVERAGE MARKET SHARE OF 15PERCENT EACH.
MR NG’ONA ADDS THAT THE REMAINING 13 OR SO HAVE ALSO MANAGED TO GRAB EXPANSION OPPORTUNITIES AND ARE ABLE TO PROVIDE A FORMIDABLE OR SIGNIFICANT COMPETITION BY ANY MEASURE BUT DESPITE A SURGE OF BANKING SERVICES AND PRODUCTS, ON THE BACK OF A RELATIVELY STAGNANT DEMAND SIDE, PRICES OR BANKING CHARGES HAVE REMAINED HIGH.
HE SAYS IT IS WORTH WONDERING WHY INTEREST RATES AND MOST OF OTHER CHARGES CHARGED BY COMMERCIAL BANKS ARE THE ONLY VARIABLE THAT APPEARS NOT TO BE RESPONDING TO THE MUCH TALKED ABOUT IMPROVED AND SUSTAINED MACROECONOMIC ENVIRONMENT IN ZAMBIA

published by augustine

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