An Essay on the Ethical and Corporate Governance Issues in the 2003/4 Zimbabwean Banking Crisis
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Date
2014
Journal Title
Journal ISSN
Volume Title
Publisher
OMICS Publishing Group
Abstract
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).
Description
An Essay on the Ethical and Corporate Governance Issues in the 2003/4
Zimbabwean Banking Crisis
Keywords
Ethics, Deontology, Teleology, Banking crisis, Bank regulation
Citation
Nyangara, D. Nyangara, M. R. Mazviona, B. W. 2014. An Essay on the Ethical and Corporate Governance Issues in the 2003/4 Zimbabwean Banking Crisis. International Journal of Economics and Management Sciences 2014, 3:4