BY BUSINESS REPORTER
Nedbank Zimbabwe has met the minimum capital requirement of US$30 million set by the Reserve Bank of Zimbabwe (RBZ) after raising additional funds through a rights issue, the central bank announced yesterday.
In the February 2022 Monetary Policy Statement issued last week, the central bank reported that as at December 31, 2021, 13 of the 18 operating banking institutions met the new minimum capital requirement of US$30 million.
However, this excluded People’s Own Savings Bank, which the RBZ said had no statutory minimum capital requirement.
“Further to the announcement in the Monetary Policy Statement of 7 February 2022 that Nedbank Zimbabwe Limited was non-compliant with the minimum capital requirement as at December 31, 2021, the Bank is pleased to advise the public that, Nedbank Zimbabwe Limited has raised additional capital through a rights issue and is now compliant with the minimum capital requirement of Zimdollar equivalent to US$30 million,” RBZ governor John Mangudya said. “Accordingly, Nedbank Zimbabwe’s reported minimum capital as at February 9, 2022 is Zimdollar equivalent to US$31,1 million, against the regulatory minimum of the Zimdollar equivalent to US$30 million.”
RBZ first announced the US$30 million minimum capital requirement in January 2020, which was raised from US$25 million, under Tier 1 capital requirements.
Under Tier 2 capital requirements, commercial banks, merchant banks, building societies, development banks, finance and discount houses must meet a threshold of US$20 million.
Lastly, under Tier 3 capital requirements for deposit-taking microfinance banks, the threshold is US$5 million while credit-only microfinance institutions must meet a US$25 000 threshold.
The Zimbabwe dollar’s continued loss of value is threatening the stability of banks as these institutions transact in billions of dollars and hold billions of dollars in that currency as deposits.
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