By Stanley James, Business Editor
ZIMBABWE’s banking sector has been granted more time by the central bank to mobilise the required capital to sustain operations for this year.
In January last year, the Reserve Bank of Zimbabwe (RBZ) increased minimum capital requirements for banks to promote resilience of the financial sector.
In an update, the central bank revealed that due to the negative impact of COVID-19 on banks, it is extending the deadline for compliance with the requirements to 31 December this year, from 31 December 2021.
Bankers Association of Zimbabwe Economic Cluster Chairman, Mr James Wadi described the move by the central bank as key in maintaining the growth of the industry.
“We are gratified by such an initiative by the central bank, as it will enable most of our members to restrategise and focus on raising more capital to sustain businesses, taking into account some challenges that we have been facing,” he said.
The central bank update shows that out of the 18 operating banking institutions, 13 banks had complied with the requirements for their chosen capital tier levels.
The required minimum capital is equivalent to USD30 million for tier one banking institutions and USD20 million for building societies.