RBZ: Bank Charges Cap Zimbabwe 2026 Slashes POSB Profit

• The Reserve Bank of Zimbabwe's 2026 Monetary Policy Statement introduced new caps on bank charges to foster a savings culture.
• Withdrawal fees for USD and ZiG are now capped at 2% of the amount, while POS swipe fees are capped at 1.5% of the transaction value.
• Minimum POS fees have been eliminated, and account balance checks are now free across all banking and mobile platforms.
• People's Own Savings Bank (POSB) reported a ZWG108.48 million profit in H1 2026, a decrease from ZWG187.42 million in H1 2025, primarily due to the policy's impact on non-funded income.
• Despite reduced profitability, POSB maintained strong financial health with a 72% liquidity ratio, 36.56% capital adequacy, and a 2.09% non-performing loans ratio.

These directives, primarily aimed at fostering a stronger savings culture among the populace, have already begun to reshape the revenue streams of financial institutions operating in the country.

The Reserve Bank of Zimbabwe (RBZ) introduced significant changes to its monetary policy in the first half of 2026, implementing new caps on various bank charges across the financial sector. These directives, primarily aimed at fostering a stronger savings culture among the populace, have already begun to reshape the revenue streams of financial institutions operating in the country. The People's Own Savings Bank (POSB), for instance, reported a net profit of ZWG108.48 million for the first six months of 2026. This figure represents a notable decrease when compared to the ZWG187.42 million recorded during the corresponding period in 2025.

This decline in profitability for POSB was directly attributed to the impact of these new monetary policy measures, which were introduced during the first half of 2026. The regulations adversely affected the bank's non-funded income, a critical component of its earnings. Despite the reduced profit, the institution demonstrated underlying resilience, successfully maintaining robust financial health across other key operational metrics, underscoring its ability to adapt to the evolving regulatory environment.

The Reserve Bank of Zimbabwe's Monetary Policy Statement for the first half of 2026 outlined clear and specific directives for all banking institutions regarding transaction fees. To encourage greater public participation in the formal financial system and boost the national savings culture, the RBZ mandated a significant reduction in bank charges. This comprehensive policy included capping Zimbabwe bank withdrawal fees 2026 for both US Dollars (USD) and the local Zimbabwe Gold (ZiG) at a maximum of 2% of the total amount withdrawn by customers.

Further regulations introduced under the broader Zimbabwe financial sector regulations stipulated that Point of Sale (POS) Swipes would also be subject to a cap, set at 1.5% of the transaction value. Crucially, all minimum fees previously associated with POS transactions were entirely removed, simplifying the cost structure for consumers. Additionally, the RBZ policy declared that checking account balances would now be completely free across all banking and mobile platforms, a strategic move designed to enhance transparency and accessibility for all customers. These measures collectively represent a substantial shift in the operational landscape for banks in Zimbabwe, directly impacting their fee-based income.

Despite the immediate challenges presented by the RBZ bank charges cap Zimbabwe 2026, POSB showcased strong underlying financial stability and resilience. The bank's net operating income experienced a 9% reduction, falling to ZWG659.47 million from ZWG723.96 million in the comparable period. This decline directly reflects the impact of the Reserve Bank of Zimbabwe monetary policy adjustments on its non-funded income, particularly from the new ZiG transaction charges Zimbabwe and other capped fees. Conversely, operating expenses saw only a modest 3% increase, reaching ZWG550.99 million from ZWG536.53 million. This marginal rise was primarily driven by strategic business expansion initiatives, yet it still demonstrated the bank's continued commitment to disciplined cost management.

The bank's asset quality remained robust, with a non-performing loans (NPL) ratio of 2.09%, which is comfortably below the regulatory threshold of 5%. Liquidity also stayed strong, evidenced by a liquidity ratio of 72%, significantly surpassing the 30% regulatory minimum. Furthermore, POSB's capital adequacy stood at a healthy 36.56%, well above the 12% regulatory requirement, underscoring its strong capital position and overall financial resilience in the face of the POSB profit impact RBZ policy. Looking ahead, the bank's board expressed confidence in delivering a resilient performance in the second half of 2026, with strategic plans to grow its core business, diversify revenue streams, and maintain disciplined cost management to preserve profitability.

Financial institutions in Zimbabwe must ensure their fee structures comply with the Reserve Bank of Zimbabwe's 2026 Monetary Policy Statement, which caps withdrawal and POS swipe fees and makes balance checks free. Compliance officers should review current charges to avoid regulatory breaches and adjust financial models accordingly.

Source: Original reporting via New Zimbabwe.