An Essay on the Ethical and Corporate Governance Issues in the 2003/4 Zimbabwean Banking CrisisDavis Nyangara1*, Melody R Nyangara2 and Batsirai W Mazviona3
- *Corresponding Author:
- Davis Nyangara
Department of Finance,
National University of Science and Technology
E-mail: [email protected]
Received date: January 02, 2014; Accepted date: October 15, 2014; Published date: October 25, 2014
Citation: Nyangara D, Nyangara MR, Mazviona BW (2014) An Essay on the Ethical and Corporate Governance Issues in the 2003/4 Zimbabwean Banking Crisis . Int J Econ Manag Sci 3:199. doi:10.4172/2162-6359.1000199
Copyright: © 2014 Nyangara D. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author andsource are credited.
This paper reviews the ethical and corporate governance issues that characterized the 2003/4 Zimbabwean banking crisis. There are contrasting views on the legal and moral roots of the crisis, and consequently, different analysts have come up with different assessments of the morality and professional propriety of measures adopted by the Reserve Bank of Zimbabwe (RBZ), as bank regulator, in response to the developments in the banking industry. While there is an almost universal acknowledgement among analysts that corporate governance and ethical shortcomings contributed to the crisis, there appears to be no universal theory justifying the response of the regulator. A critical review of the events surrounding the crisis, with some benefit of hindsight, points to a form of collective responsibility among bankers, regulators, and politicians. This analysis draws on deontological and teleological ethical theories to assess the resolution of the myriad of ethical dilemmas that characterized the period before and during the crisis. The analysis also relies on legal and prudential guidelines on good governance in banking institutions, in particular the Banking Act (Chapter 24:20).