. . . . as NSSA intensifies banking sector recapitalisation

NATIONAL Social Security Authority (Nssa) will next week convene a board meeting to discuss recapitalisation plans of financial institutions it holds interest in ahead of the June 30 2013 deadline.

Report by Victoria Mtomba

Nssa has 22% interest in FBC holdings, ZB Bank, Interfin Bank Limited and Capital Bank.

The organisation’s general manager James Matiza said: “We will have a board meeting on the 26th of June and these are some of the issues that we will be discussing.”

The Reserve Bank of Zimbabwe (RBZ) set new capital requirements last June compelling commercial and merchant banks to top up their capital thresholds to $100 million.

Financial institutions were expected to comply with the new minimum capital requirements by June 2014.

The financial institutions were, however, supposed to show up a minimum capital of $25 million by December 31 last year, $50 million by June 30 this year and $75 million by year-end.

FBC Building Society, Capital Bank and ZB Bank were yet to comply with the directive, while Interfin Bank is still under curatorship.

FBC Holdings Limited chief executive John Mushayavanhu said it would delay the merging of its sub units FBC Bank and FBC Building Society although preparatory work was already underway as they wanted to continue to enjoy the non-tax benefits of the building society.

Mushayavanhu told analyst at the firm’s analyst briefing in March this year that the group posted an increase in profit of 25% for the year 2012 $15,6 million due to the non-taxing of FBC Building society.

Currently, building societies in the country were not taxed by the central bank.

“We will be merging the bank and the building society to meet the minimum capital requirements. Preparatory work is in progress. We will do it even on the midnight of June 30. We will take our time,” Mushayavanhu said.

ZB Holdings, the parent company for ZB Bank, recently published a cautionary statement showing that the group was in negotiations with a suitable suitor.

RBZ governor Gideon Gono recently said the previously stated banking sector capitalisation deadlines would be adjusted to take into account the said fundamental developments.

“The details in this regard will be unveiled through the forthcoming Mid Term Monetary Policy statement due before the end of July 2013.Meanwhile, and in the interests of maintaining financial stability, the Reserve Bank continues to monitor the performance and conduct of banking institutions and efforts to address capitalisation, corporate governance and other regulatory issues in the sector will continue,” Gono said.

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7 Comments

  1. Hozay Morinyo

    Capital Bank is finished… If you have money there better pull it out now!!!

  2. nssa is blowing worker pensions on corrupt investments zvima bank that they are invested in are just ponzi schemes.capital and interfin are ashes and fbc cant be trusted at all maybe zb but not the kind of bank you would say i can bank with and really enjoy exciting innovative banking its just a damn squib bank surviving maybe on government departments banking with it. nssa just needs a new proper board and new management kwete mbavha idzi vana Matiza i mean really u have overseen investments in two banks that have failed and u were not fired, no risk assessment was done coz u were just promised and got loans and kickbacks from interfin and capital bank .it makes me sick these people are just abusing poor peoples money and nothing is done to bring them to book.

    1. Why is NSSA not putting money into industry where they draw most of their income? Companies are closing left right and center because of dearth of working capital while they paying chihwande chihwande in these idiotic banks. Why does the Finance Minister redirect that they channel investment to the productive sectors not just the service industry? There are Norwegian and Swedish investment bodies like NSSA who own large industries in Nordic countries to the benefit of the communities they draw their income from. Would we be wrong in believing that NSSA officers are getting backhanders from the people they lend our funds to? Banks are harldy the best place to put money in at the moment, then why is it our only investment vehicle is sinking good money to chase after bad money? Is there something we are not being told? Finance Minister Biti, contrary to everything he believes himself to be, has prooved to be a monumental failure as the person tasked with reviving our economy!!!

  3. Mashura padunhu

    NSSA these nssa people are just deducting our hard earned cash for nothing.Now they want to kill the remaining companies whilest their services are so poor.

  4. Tafirenyika Matsika

    I NSSA now a vehicle for saving poorly managed and failing banks? NSSA is disinvesting pensioners’ funds on banks that have destroyed the very life of pensioners by abusing depositors’ funds. These banks should be in the hands of leadership that proves its worth through competition and innovation on products and services, controls, skills development and policies that increase profitability for the benefit of the Zimbabwean economy.

    The RBZ should carry out a skills audit for these banks and penalize those banks without adequate internal skills development strategies as well as those employing incompetent and unqualified senior managers.

    1. @Tafi- I rather like where you are going..RBZ should carry out a skills audit, some of the fellows running banks have no business being there. Perhaps this skills audit could be extended to NSSA itself, do the investments managers running such a large portfolio have the requisite qualifications and experience..The whole chain is littered with half baked decisions hence the call..

  5. I see thats why our NSSA deductions rose for you to capitalise your banks. Nhai

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