Standard Chartered, Barclays defy RBZ
2012 March 09 00:57:14 | 932 Views
- Ingabe ikuphatheleni i-MDC, njalo kusizani ukuyivotela? | 2013 May 13 17:03:55 | 2696 views
- Ikuphatheleni iMDC, kusiza ngani ukuyivotela? | 2013 May 08 19:28:47 | 2711 views
- MDC-T on course | 2013 March 27 14:05:12 | 6598 views
- People will vote for a party with sustainable economic programmes | 2013 March 04 02:36:52 | 7380 views
- Introducing: Election (2013) campaign articles | 2013 March 02 11:08:41 | 5949 views
- Prostitute dies during love making, 'resurrects' in coffin | 2013 March 23 10:13:12 | 84163 views
- Woman sends photo of naked President Mugabe via Whatsapp | 2013 January 10 15:04:10 | 45937 views
- Zim woman who had sex with boyfriend as son watched named | 2013 January 31 09:05:43 | 44503 views
- Man marries mother-in-law after his wife died | 2013 January 16 11:05:42 | 30256 views
RBZ Governor Dr Gideon Gono yesterday said the central bank will descend heavily on the truant banks.
Statistics show that Nostro balances for 22 banks stood at US$312, 6 million as of yesterday, instead of US$230 million had all the banks heeded the RBZ directive.
At least US$82 million was outstanding as of yesterday.
"The Reserve Bank of Zimbabwe shall be meeting with banks that have not complied with a view to taking stern measures to ensure compliance,â€ Dr Gono said last night.
Figures showed that as of yesterday, Standard Chartered had US$109, 3 million as its Nostro balance, instead of keeping US$28,4 million as per the new requirements.
The variance, therefore, stood at US$81 million.
The bank had its request for a dispensation to keep funds in excess of the 25 percent requirement turned down by the central bank.
Standard Chartered said it needed to keep the funds offshore to facilitate disbursements to clients.
Barclays had a Nostro balance of US$37,4 million as of yesterday, but had not complied.
It had a variance of $16,4 million.
The bank had also applied to keep the funds offshore, saying they were for loan facilities. Its request for a reprieve was also thrown out.
â€œBanks with large amounts in Nostro balances have submitted applications for dispensations to keep funds offshore to meet future obligations.
â€œIn light of these dispensations, the Reserve Bank of Zimbabwe has declined or approved some of the applications,â€ said Dr Gono.
Stanbic Bank was given a reprieve as the bulk of its Nostro account funds were earmarked to pay a USS$50 million Zesa debt on April 1 while US$20 million was committed towards a Youth Fund to be launched next week.
An additional US$10 million had been set aside for a client.
MBCA, which had a Nostro account balance of US$53,5 million successfully applied to keep a higher than stipulated percentage offshore saying it would be compliant as from March 12.
ZB Bank, with a Nostro balance of US$15,6 million as of yesterday, could also not comply because US$3,8 million was blocked under the Zimbabwe Democracy and Economic Recovery Act (Zidera) enacted by the US Government as part of its sanctions regime against the country.
FBC Bank, with an offshore account balance of US$17,9 million as of yesterday, could also not comply because it had transferred US$14 million offshore to cater for cash imports.
Indications last night were that the rest of the banking sector was within the stipulated limits or were, in most cases, carrying Nostro balances that were lower than the 25 percent threshold.
The central bank directed that with effect from March 1, all banks were required to maintain a maximum of 25 percent of their Foreign Currency Account balances offshore to meet their daily international payment obligations while the balance would be transferred to onshore accounts.
This measure was meant to improve liquidity.
It has emerged that some banks are not comfortable with the directive and have sought reprieve for one reason or the other.
Zimbabwe is in dire need of funds to finance the productive sector. Excess balances in Nostro accounts are seen as a source of some of the funds required to boost activity in the productive sectors.
Available lines of credit have failed to meet demand for funds as companies seek working capital and funds for recapitalisation.
Last night, Dr Gono said the 25 percent threshold will be increased to 30 percent from June 30.
The Nostro balances will continue to be eligible for liquid asset ratio requirements.
Furthermore, all cash repatriations to fund Nostro balances will be processed in line with the 25 percent threshold, a regulation that will not apply in cases where soiled currency notes were being exported.
Staff Reporter | 2013 May 20 | 198 Views
Staff Reporter | 2013 May 20 | 182 Views
Staff Reporter | 2013 May 20 | 251 Views
Staff Reporter | 2013 May 20 | 211 Views
Staff Reporter | 2013 May 20 | 420 Views
Staff Reporter | 2013 May 19 | 843 Views
Staff Reporter | 2013 May 19 | 623 Views
Staff Reporter | 2013 May 19 | 1852 Views
Staff Reporter | 2013 May 19 | 1196 Views
Gaye Davis, City Press | 2013 May 19 | 1936 Views
Staff Reporter | 2013 May 19 | 1281 Views
Stephen Grootes | 2013 May 19 | 1093 Views
Staff reporter | 2013 May 19 | 2957 Views
Moyo Roy | 2013 May 19 | 3775 Views
Moyo Roy | 2013 May 19 | 2933 Views
STaff reporter | 2013 May 19 | 3194 Views
Staff reporter | 2013 May 19 | 1424 Views
Staff reporter | 2013 May 19 | 2523 Views
Staff reporter | 2013 May 19 | 1081 Views
Staff reporter | 2013 May 19 | 1299 Views
Staff reporter | 2013 May 19 | 1231 Views
MDC Spokesman | 2013 May 19 | 1031 Views
Staff reporter | 2013 May 19 | 1006 Views
Sports reporter | 2013 May 19 | 1136 Views
Emmanuel Ndlovu | 2013 May 18 | 1552 Views
Arts reporter | 2013 May 17 | 1847 Views
Entertainment Correspondent | 2013 May 17 | 2253 Views
Moyo Roy | 2013 May 16 | 2015 Views
Vasco Shaya | 2013 May 16 | 3684 Views
Staff Reporter | 2013 May 15 | 1969 Views