Banks have been given up to February 14 to meet minimum Reserve Bank of Zimbabwe (RBZ) capital requirements or face closure.
As at December 31, 2011, 20 out of 25 operating banking institutions (excluding POSB) were in compliance with the prescribed minimum capital requirement of $12,5 million.
Presenting his monetary policy statement in Harare yesterday, RBZ governor Gideon Gono said despite several extensions of recapitalisation deadlines, a few banking institutions had failed to conclude their recapitalisation initiatives.
“As such, there is no prudential basis for the continued existence of such entities,” Gono said.
“Accordingly, the undercapitalised institutions should do the honourable thing and voluntarily surrender their licences to the supervisory authorities, failing which they will be dealt with in line with the Reserve Bank’s Troubled and Insolvent Bank Resolution Policy.
Accordingly, all non-compliant institutions, including those previously issued with special dispensations for compliance with minimum capital requirements, have up to 14 February, 2012 to finalise their recapitalisation initiatives or consummate their mergers and acquisitions.
By no later than 29 February, 2012, the Reserve Bank shall engage those institutions that would have failed to identify credible partners and concluded the recapitalisation transactions,” he said.
Gono said undercapitalised banks had not taken heed of previous extensions warnings through previous monetary policy statements, to allow for the finalisation of various lethargic and protracted recapitalisation initiatives.