The Economics Association of Zambia (EAZ) says the decision by the Bank of Zambia (BoZ) to review bank charges and fees will strengthen and increase deposits in the banking industry.

The association says the increased deposits will then be channeled into various investments in the country.

This month Bank of Zambia reviewed the fees and charges for bank account holders.

EAZ President Lubinda Haabazoka says the decision by the Central Bank will create confidence among depositors that their money is safe.

He says it is unjustifiable that banks will look at fees as a source of revenue because their source of revenue should be the difference between interest charged on loans and interest paid on deposits such as fixed deposit accounts.

Dr. Haabazoka says the deposit base for commercial banks is unstable explaining that the core business of commercial banks is to attract deposits and use them to lend and convert savings into investment which will help national development.

The EAZ President has further explained that much of the money used by commercial banks is from depositors with limited minimum capital requirement.

He says this development will also promote financial addition which government has embarked on.
“The move would also promote the use of credit and debit cards for safe transactions and reduce the cost associated with cash”, Dr. Haabazoka said.