Bank Supervision

The Role of the Division

One of the core functions of the Reserve Bank of Zimbabwe is to promote financial stability. The Bank Supervision Division contributes to this overarching mandate through its responsibility in (a) the registration of new banking institutions, (b) the conduct of off-site surveillance, and (c) the conduct of risk based on-site examinations.

The Reserve Bank of Zimbabwe Act [Chapter 22:15] empowers the Reserve Bank to supervise banking institutions and foster stability and proper functioning of the financial system. The Banking Act [Chapter 24:20] and Banking Regulations (Statutory Instrument 205 of 2000) provide for the registration, regulation, continuous monitoring and supervision of persons conducting banking business in Zimbabwe .

The Reserve Bank is also empowered to register and supervise money-lending institutions, micro-finance Institutions, building societies and the People's Own Savings Bank (POSB) following the invocation of Section 3(3) of the Banking Act [Chapter 24:20] in March 2005.


The objectives of the Division are to:

  • Enhance and maintain the safety and soundness of the financial system through effective risk-based supervision;
  • Periodically review regulatory and supervisory regulations, policies and procedures in line with international best practice and the macroeconomic environment;
  • Promote public confidence in the financial system by ensuring a consistent, objective and transparent regulatory and supervision process;
  • Minimise moral hazard and supervisory forbearance through taking prompt supervisory action against weak and troubled financial institutions in order to protect the integrity of the financial system;
  • Promote sound corporate governance practices and adoption of adequate risk management systems;
  • Foster a culture of strict compliance with laws, rules regulations, policies, procedures, guidelines and international best practice; and
  • Building supervisory capacity through structured training and development programmes to enhance the skills base.