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Ecobank meets new capital requirements

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ECOBANK Zimbabwe Limited (EZL) says it has complied with the first phase of the Reserve Bank of Zimbabwe minimum capital requirements of $25 million.

ECOBANK Zimbabwe Limited (EZL) says it has complied with the first phase of the Reserve Bank of Zimbabwe minimum capital requirements of $25 million. Report by Victoria Mtomba Business Reporter

The central bank raised the minimum capital requirements for both merchant and central banks to $100 million under a phased recapitalisation plan.

Banks were required to have raised $25 million by December 2012 before full compliance by June 2014.

Speaking at a Press conference in Harare on Wednesday, Ecobank Transnational Incorporated group chief executive officer Thierry Tanoh said: “We have complied with the new capital requirements.

“We added another $15 million to comply with the minimum capital requirements.”

Tanoh said the African region was important to the group and profits were now being realised from the business.

He added that the group had plans to grow in the future.

Ecobank Zimbabwe has 11 branches in the country and was looking forward to opening new branches this year.

Ecobank Transnational became the major shareholder in Premier Finance Group in 2010 when it injected $10 million into the bank.

Ecobank bought a 70% stake in Premier Finance.

The pan-African group came into the bank to shore it up and help Premier meet the minimum capital requirements that were at $12,5 million then.

Tanoh said the group had no plans to list outside Africa.

The transnational group is listed in Lagos, Ghana and on the West African regional bourse. It has assets worth $9 billion and operates in 30 countries on the continent.

The central bank would be introducing more measures for the banking sector this month in a move to ensure that good corporate governance prevails in the sector as a way of bringing the financial sector in line.

Several other banks that have complied with the minimum capital requirements include CBZ Bank, AfrAsia Kingdom Holdings Limited and FBC Bank.