There are 28 financial institutions in Zimbabwe: 18 commercial banks, four building societies, four merchant banks, one discount house and one savings bank.
According to the Bankers Association of Zimbabwe (BAZ), capital requirements could be the shareholders’ value in the form of assets, investments return, share capital or reserves could add to capital requirements.
According to financial institutions interim results for the period ending June 30, banks had added assets on their balance sheet a development which could suggest that all institutions had met the deadline.
BAZ President John Mangudya could not say whether there was a bank that had not met the capital requirements saying “the sector was in a good position and BAZ was in constant discussion with its members to help members to meet the required thresholds for those who were still working on the requirement”.
As of last night there was no formal communication from CFX Bank, ZB Bank, Genesis, NDH and Interfin on whether they had met the requirements.
Commercial banks were required to have a minimum capital of US$6,25 million by September 30, while building societies and merchant banks were required to a have minimum capital of US$5 million each.
Minimum capital for finance and discount houses is US$3,75 million per institution.
Asset managers were supposed to have US$1,25 million as minimum capital.
The last formal communication by NDH Holdings Ltd shareholders was that they had approved a private placement to raise capital in order to meet the minimum capital requirements for its merchant banking subsidiary.
CFX said it intends to raise the same amount through a rights issue and said it is currently in negotiations with a foreign bank. Genesis Financial Holdings, a subsidiary of diversified insurance entity Zimre Holdings Ltd , said it is planning to raise US$7,3 million through a rights issue in order to re-capitalise its merchant bank unit.
In a circular to shareholders, ZB Financial Holdings said it has approved a plan to raise the capital required through a private placement.
Interfin was said to be in talks with a Nigerian bank which wanted to inject fresh capital. It was however not clear by yesterday if they had met the capital requirements as no official comment could be obtained.