Harare — The preoccupation of some of our banks with abnormal transactions involving fictitious wealth and their subsequent suspension from the clearing house clearly shows that they have learnt nothing from the 2004 banking crisis.

We have in the past week seen the Reserve Bank of Zimbabwe decisively moving in to suspend five banks from the clearing house for failing to honour cheques written by their customers to other banks.

In simple terms, when a bank fails to honour cheques, it means its solvency and the competency of its management is questionable.

The bank risks going under curatorship or closing shop.

This time around, the RBZ appeared to know what was going on but decided to wait for the momentous time when the bubble would burst.

And that time came last week when five banks failed to settle their obligations, exposing their involvement in fraudulent transactions on the Zimbabwe Stock Exchange and the parallel market. The evidence was there for all to see.

It was clear the banks had reached dangerous levels as evidenced by the desperate manner in which they scurried for assistance from the central bank looking for unsecured accommodation, which was rightly refused.

Any right-thinking person would ask why would the central bank chip in to fund illicit deals, which do not help the productive sector but only serve to fuel inflation?

Indeed, for some time, we all have watched and wondered as individuals "burned United States dollars" and moved huge amounts of artificial wealth running into sextillions and quintillions through banks and the Zimbabwe Stock Exchange.

This has left a good number with unimaginable "fat bank balances".

RBZ Governor Dr Gideon Gono even questioned how it defied logic to have one individual in this country said to have sextillions in the bank when in fact there is only $10 trillion in circulation.

We had reached the level where the activities of some banks had become a threat to the economy and the central bank, as the regulator of the banking sector, had to move in to restore sanity.

The problem is some superintendents overseeing our banks do not want to stick to their core business of prudent banking activities.

They are after amassing personal wealth through indiscipline and fraudulent activities on the parallel market and the stock exchange at the expense of the nation.

And when the RBZ descend on them, they cry foul and point fingers. The central bank introduced austerity measures and closed errant banks during the 2004 banking crisis.

But some quarters viewed the move as a witch-hunting exercise orchestrated by Dr Gono to get even with his perceived foes in the financial services sector. It also earned the Governor many labels, some describing him as someone patently ambitious of higher political office.

RBZ measures are introduced with due consideration to protect depositors and prevent collapse. They are therefore well-intentioned.

Rigorous monitoring of the banking sector by the central bank and adoption of sound corporate governance and risk management practices cannot be overemphasised.

It would be sad if our banking sector is allowed to sink to the 2004 dark epoch when a number of banks went under after failing to meet their obligations.

The banking sector should remain safe and sound, as a stable banking sector plays a critical role in the economic development of any country.

And when banks step outside their core business, the RBZ must intervene without fear or favour and whip banks into line.