TOP niche NMB Bank is making frantic efforts to align its board to Reserve Bank requirements on financial institutions.
Central bank regulation
s require a banking institution’s board to be constituted by five directors. The NMB is one short.
The bank has so far short-listed two candidates, one of whom will take up a directorship in its retail banking board.
The NMB is awaiting approval from the central bank, which has to approve the curriculum vitae of potential board members.
Candidates approached by the bank so far have turned down the offer because of the stringent screening process required by the central bank.
The process requires would-be banking directors to declare their business interests, have relevant experience in banking or finance, acquire a valid tax clearance certificate and a police clearance.
NMB chief financial officer Mario dos Remedios confirmed the bank was still to meet the requisite number of directors for its banking operations.
“NMB Bank seeks to ensure strict compliance with applicable RBZ regulations and applications are in process regarding the appointment of additional new directors,” said Dos Remedios.
The banking group is currently trying to recapitalise its operations through a billion-dollar rights issue, which has been deferred to later date.
The rights issue is set to inject fresh capital into the financial counter, which has been found in a short position on numerous occasions.
The banking group’s shareholders are said to have approved the move after funds projected to be raised through the rights issue fell short of the new capital requirements announced by the RBZ.
The new regulations to be effected in September 2006 will see commercial banks being required to increase their capital requirements to $100 billion from the current $ 10 billion.
The increase is meant to be in line with those of international financial concerns of US$10 million.
The founding directors of the bank, Dr Julius Makoni, Otto Chekeche and James Mushore who hold a controlling 35% stake, have resigned from the board.