THE People’s Own Savings Bank (POSB) requires a capital base of more than $200 million to operate at the expected banking standards, Finance Minister Patrick Chinamasa has said.
Speaking on Wednesday during a meeting of the bank’s new board, Chinamasa said the POSB is operating at a very low capital base of just $20 million yet it has the largest customer base of more than 500,000 nationwide.
“My wish is for Zimbabwe to have locally owned big banks which have an impact regionally,” he said.
“I have been informed the bank has made a profit of $5 million during the 2015 half-year period ending June.
“I anticipate more profits in future and would want to meet with the board every three months so we may be able to ask questions on issues concerning the bank.”
The POSB has moved from using manual pass book ‘green’ and ‘red’ books to various electronic media which include debit cards, mobile banking, internet banking and use of Real Time Gross  Settlement (RTGS).
The new nine-member new board is dominated by females “to mix skills drawn from a diversity of intellectuals”.
Members include, Matilda Dzumbunu, Board Chairperson, CEO Admore Kandlela, Israel Ndlovu, Onias Jambwa, Ignatius Mvere, Nomsa Chindomu, Caecilia Nyamutswa, Monica Mureriwa and Patience Shuro.
Chinamasa challenged the board to maintain good corporate governance as he expected (under the Corporate Governance Bill) the entity to hold an Annual General Meeting (AGM).
The POSB board comes as a relief to the bank as most parastatals t are being run without boards. Those that are in place are operating on an acting capacity which affects the smooth running of the organizations.
Meanwhile, the government has been focusing on stabilizing the banking sector by restoring the central bank’s functions, takeover non-performing loans and strengthening corporate governance structures throughout the economy which is struggling to get back to its feet for over a decade-long recession.Advertisement