HomeBusiness DigestMBCA hits $2 trillion capital level

MBCA hits $2 trillion capital level

Paul Nyakazeya

MBCA Bank has increased its capital adequacy levels to over $2 trillion, way above the US dollar-linked target of just over $1 trillion at the ruling

exchange rate required to be met by commercial banks by September, businessdigest established this week.

The commercial bank, which recently transmuted from the Merchant Bank of Central Africa, is sitting on over $2 trillion in capital, sources indicated this week.

The move has bolstered foreign shareholders’ confidence in the bank, prompting one of the major shareholders, Nedbank, to avail a US$80 million trade facility to the financial institution.

This amounts to $8 trillion at the ruling exchange rate.

MBCA Bank’s management could neither confirm nor deny reports that the group had secured a credit from Nedbank, but businessdigest is reliably informed that a deal had already been sealed following talks held between the bank and Nedbank in South Africa over the past few months.

But MBCA Bank managing director, Denis Denya, confirmed the group had “already more than doubled the required capital for commercial banks” set for September.

“We’re very pleased with the response the bank has received from its clients from a deposit mobilisation point of view. This response has enabled MBCA Bank to remain liquid during the first quarter of the year thereby avoiding the expensive RBZ (Reserve Bank of Zimbabwe) accommodation window,” Denya said.

Nedbank’s credit line to MBCA follows a similar facility extended to the bank by Afreximbank amounting to US$60 million and another US$10 million given to the bank by London-based founding shareholder, MN Rothschild & Sons.

“The US$80 million will go a long way in assisting MBCA Bank’s clients and ultimately the country at a time when it is very difficult to obtain support from the international community,” a source said, maintaining the deal was done.

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