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Reserve Bank of Zimbabwe (RBZ) says five local banks may face closure if they fail to regularise their minimum capital requirements.
Two commercial banks- Royal Bank, and ZABG Bank-are yet to meet the set $12, 5 million requirements.
“The Reserve Bank will deal decisively, without fear or favour, with all non-compliant institutions in terms of the Troubled and Insolvent Bank Policy by no later than 31 March 2012,”Gono said, adding that undercapitalised banks should consider surrendering their licenses to supervisory authorities,”RBZ governor Gideon Gono said.
“As such, any banking institution that is not compliant with the law shall not be allowed to conduct business effective April 2012,” he said.
“Accordingly, all non-compliant institutions including those previously issued with special dispensations for compliance with minimum requirements, have up to 14 February 2012 to finalise their capitalisation initiative or consummate their mergers and acquisitions,” he added.
Commercial banks were given a minimum requirement of $12,5million while Merchant Banks and Building societies are required to have at least $10 and $5million capital respectively.
“As at December 31, 2011, 20 out of 25 operating banking institutions (excluding) POSB were in compliance with the prescribed minimum capital requirements while all the 16 asset management companies were with the minimum requirement of $500 00,” Gono said.
Two commercial banks- Royal Bank, and ZABG Bank-are yet to meet the set $12, 5 million requirements.
“The Reserve Bank will deal decisively, without fear or favour, with all non-compliant institutions in terms of the Troubled and Insolvent Bank Policy by no later than 31 March 2012,”Gono said, adding that undercapitalised banks should consider surrendering their licenses to supervisory authorities,”RBZ governor Gideon Gono said.
“As such, any banking institution that is not compliant with the law shall not be allowed to conduct business effective April 2012,” he said.
“Accordingly, all non-compliant institutions including those previously issued with special dispensations for compliance with minimum requirements, have up to 14 February 2012 to finalise their capitalisation initiative or consummate their mergers and acquisitions,” he added.
Commercial banks were given a minimum requirement of $12,5million while Merchant Banks and Building societies are required to have at least $10 and $5million capital respectively.
“As at December 31, 2011, 20 out of 25 operating banking institutions (excluding) POSB were in compliance with the prescribed minimum capital requirements while all the 16 asset management companies were with the minimum requirement of $500 00,” Gono said.
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