New shareholding threshold for Zimbabwe banks

The Reserve Bank of Zimbabwe (RBZ) is putting a new shareholding threshold where individuals can only own up to 10% in a banking institution as part of a roadmap to attain corporate governance, RBZ deputy governor Charity Dhliwayo has said.

The measure is contained in the amendments to the Banking Act which come following bank closures with shareholders and senior management being accused of looting depositors' funds.

Dhliwayo said the government was in the process of amending the Banking Act to reduce bank failures in the country saying that with the new Act individuals will only be allowed to hold up to 10% shareholding in a bank and companies can only hold 25% while registered and well-established companies can hold up to 65% shareholding.