SEVERAL commercial banks have traded themselves into new capital levels, with a handful others embarking on rights issues to meet the new capital levels a
head of the September 30 compliance deadline.
FBC Holdings this week announced its commercial bank, FBC Bank, had surpassed new capital requirements while the building society, FBC Building Society, had been capitalised by the two key shareholders, NSSA and FBC Holdings, through a rights issue.
“FBC Bank traded itself into compliance by the end of May 2006. As we stand right now, shareholders’ funds, excluding revaluation reserves, amount to $1,18 trillion. The figure goes up to $1,271 trillion when including revaluation reserves,” Livingstone Gata, FBC Holdings’ chief executive officer, told the group’s annual general meeting last week.
Kingdom Financial Holdings had a successful rights issue to recapitalise its commercial bank, Kingdom Bank, and the Discount Company of Zimbabwe.
Other commercial banks — Barclays, Standard Chartered, Stanbic, CBZ Bank, MBCA Bank, have already met new capital requirements of US$10 million or $1 trillion at the ruling exchange rate through earnings.
It is not clear if Zimbank, a subsidiary of the Finhold group, has met the new capital levels but the group is planning to embark on a $3 trillion rights issue to recapitalise its subsidiaries.
These include Intermarket Building Society and Syfrets Merchant Bank.CFX Financial Services is in talks with Deutsche Bank from German and ZIMRE Holdings for a possible cash injection that could strengthen its balance sheet size.
Agribank, Metropolitan Bank, NMB Bank and the Zimbabwe Allied Banking Group (ZABG) have not yet declared how they will rise cash to meet new capital levels, but indications are that the central bank will prop up Agribank and ZABG through cash injections.
NMB Bank had been subject of a rumour suggesting that it could go to bed with MBCA Bank, but indications are that MBCA is no longer interested in a merger with the bank.