18 January 2018
LATEST: Bennett in fatal chopper crash?
Polls in '4 to 5' months: Mnangagwa
$430k cocaine woman blames Brazil firm
Tobva tadii paya trio bailed after 3mths
Businessman fleeces clinic of $27,000
Soldiers deployed all over rural Zim: MDC-T
MDC-T’s Mudzuri begs ZCTU for support
Moyo claims CIO spy killed during coup
Bond notes here to stay, says Chinamasa
South Koreans in $70m Zim agro-project
Hubby bashes Star FM anchor in love row
$18/yr subscr too much for musicians
Zimbabwe beat Sri Lanka in thriller
Caps bid to rehire star forward Nhivi
A view beyond the Zimbabwe coup
'Shit-hole': Just Take moral high ground
Economy: the need for a paradigm shift
Trump rage ignores truth: A response
RBZ rules out bank shareholding changes
07/06/2014 00:00:00
by The Source
Interbank market resumes this month
Credit risk remains key challenge, RBZ
Rebranded CABS gets $45m for fresh loans
Banking sector generally stable, RBZ
Concern over State owned bank’s viability
Five banks struggling, bad loans high: RBZ
Zimbabweans prefer foreign banks, survey
Institutions limited to 25pc of banks
Banks up mortgage lending by 29pc
Hard-up local banks seek foreign partners
Banks want interest rates autonomy
Chinamasa to meet foreign banks heads
Increased lending boost Barclays profits
Non-performing loans reach 25pc
NMBZ Holdings in profit warning
Barclays chief relaxed about ownership

THE Reserve Bank of Zimbabwe (RBZ) has said it does not plan to reduce the level of institutional shareholding in banks, but is considering raising the threshold for non-financial institutions.

In a statement last Friday the RBZ said it would maintain the status quo allowing financial firms, local or foreign, to have total control as the government moves to assure banks on the country’s controversial ownership laws.

The statement, which follows press reports on proposed changes to banking regulations, comes a day after a dovish speech on bank ownership by Indigenisation Minister Francis Nhema, who said firms operating outside the resources sector would enjoy greater flexibility in the implementation of Zimbabwe’s ownership law, which requires local majority control.

Foreign institutional investors have majority stakes in some of Zimbabwe’s major banks-owned banks, including Barclays, Standard Chartered, Standard Bank, BancABC, MetBank, Afrasia, Ecobank and MBCA.

Financial institutions, local or foreign, are allowed to own up to 100 percent of local banks, while non-financial institutions are currently restricted to 10 percent. Individuals can own up to 25 percent.

“Cognizant of the fact that institutional shareholders, unlike individuals, are more likely able to inject additional capital when called upon to do so, proposals are being made that shareholding limits for companies be increased from the current 10 percent to 25 percent,” the central bank said in a statement.

“Further take note that the current banking laws provide for situations of acquisition of significant interest, which may be in excess of the thresholds specified above in specific instances such as where a banking institution is faced with undercapitalisation.

Banks in capital starved Zimbabwe have struggled to meet staggered capitalization requirements set by the central bank, and many have turned to cash-rich foreign investors.

In January, the central bank has extended the deadline for the achievement of a $100 million minimum capital threshold for commercial banks from 2014 to 2020, as several institutions continue to struggle to shore up their capital levels.

Currently, minimum capital levels are $25 million for commercial banks, $25 million for merchant banks, $20 million for mortgage lenders, $15 million for discount and finance houses and $5 million for micro-finance banks.


The central bank said the ongoing review of Zimbabwe’s banking laws was not meant to force investors to divest from the sector.

“For the avoidance of doubt, we wish to clarify that the proposed changes in shareholding limits are not meant to result in divestiture of shareholding.”

Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it






Face Book



comments powered by Disqus
RSS NewsTicker