Business / Companies
RBZ satisfied with Royal Bank and the ZABG’s recapitalisation plans
06 Apr 2012 at 15:45hrs | Views
HARARE - Zimbabwe's Reserve Bank (RBZ) is satisfied with Royal Bank (Royal) and the Zimbabwe Allied Banking Group (ZABG)'s recapitalisation plans, and it will finalise verification of these institutions' proposals later this month.
Bank governor Gideon Gono yesterday disclosed that Mines minister Obert Mpofu's Trebo and Khays (Private) Limited had acquired the Stephen Gwasira-led bank, while Royal is in talks with a Kenyan bank.
"Suffice to say though that it would appear that the two banks, namely, ZABG and Royal Bank will escape the chop as they have succeeded in courting credible investors who have put their offers on the table..," he said yesterday.
"So the overall outcome of out eventual determination is not going to be as serious and negative as we had feared it would be two months ago," Gono added.
He said ZABG executives had sealed the deal in Bulawayo on Thursday, while Royal had already received regulatory approvals for its planned investment.
Gono disclosed that besides sponsoring the southern Zimbabwe jaunt for "the ZABG directors and management", Mpofu had been involved in the financial sector through Otanya Bureau de Change - a 90s money and foreign exchange services company.
On the other hand, Genesis Investment Bank (Genesis) has failed to provide a meaningful recapitalisation plan and it faces closure.
"It is against the sad failure by some of these indigenous-owned institutions that maybe as regulatory authorities adds appealing to those of our indigenous Zimbabwean with idle capital to come forward and recapitalise these banks that are in urgent need of investors," Gono said.
"We thus call upon the relevant ministry and or agencies to make an urgent approach directly to the shareholders of Genesis Bank or the central bank to facilitate such a transformative ownership move and capitalisation rather than let the licence go to waste," he said.
ZABG, created by government in 2005 to "save" three struggling banks, has a massive $15 million negative capital â€" against a required $12 million for commercial banks, while Geneses is $3,2 million in the red.
ReNaissance, which was part of the few undercapitalised banks and placed under curatorship last year, has since complied with the RBZ threshholds after a $24 million capital injection by the National Social Security Authority.
As at December 31, 2012 out of 25 operating banking institutions â€" excluding Admore Kandhlela's People's Own Savings Bank â€" were compliant with the prescribed minimum requirements, while 16 asset management companies were within the required $500 000.
Earlier this year, the RBZ said that all non-conpliant banks faced closure effective April 2012 in the aftermath of Finance minister Tendai Biti's order for the apex bank to develop a merger framework for banks failing to meet the deadline.
Meanwhile, the RBZ on Thursday bade farewell to retiring deputy governors Edward Mashiringwani and Nicholas Ncube.
While the former had served the debt-ridden institution for 31 years, businessman and farmer Ncube is leaving after seven years.
A Master's in economics holder, Ncube is a former Finance ministry permanent secretary as well as CEO of the Zimbabwe Investment Authority.
On his own, Mashiringwani had served three governors and no less than seven finance ministers, including Bernard Chidzero, Ariston Chambati, Herbert Murerwa, Simba Makoni and Biti himself.
Bank governor Gideon Gono yesterday disclosed that Mines minister Obert Mpofu's Trebo and Khays (Private) Limited had acquired the Stephen Gwasira-led bank, while Royal is in talks with a Kenyan bank.
"Suffice to say though that it would appear that the two banks, namely, ZABG and Royal Bank will escape the chop as they have succeeded in courting credible investors who have put their offers on the table..," he said yesterday.
"So the overall outcome of out eventual determination is not going to be as serious and negative as we had feared it would be two months ago," Gono added.
He said ZABG executives had sealed the deal in Bulawayo on Thursday, while Royal had already received regulatory approvals for its planned investment.
Gono disclosed that besides sponsoring the southern Zimbabwe jaunt for "the ZABG directors and management", Mpofu had been involved in the financial sector through Otanya Bureau de Change - a 90s money and foreign exchange services company.
On the other hand, Genesis Investment Bank (Genesis) has failed to provide a meaningful recapitalisation plan and it faces closure.
"It is against the sad failure by some of these indigenous-owned institutions that maybe as regulatory authorities adds appealing to those of our indigenous Zimbabwean with idle capital to come forward and recapitalise these banks that are in urgent need of investors," Gono said.
"We thus call upon the relevant ministry and or agencies to make an urgent approach directly to the shareholders of Genesis Bank or the central bank to facilitate such a transformative ownership move and capitalisation rather than let the licence go to waste," he said.
ZABG, created by government in 2005 to "save" three struggling banks, has a massive $15 million negative capital â€" against a required $12 million for commercial banks, while Geneses is $3,2 million in the red.
ReNaissance, which was part of the few undercapitalised banks and placed under curatorship last year, has since complied with the RBZ threshholds after a $24 million capital injection by the National Social Security Authority.
As at December 31, 2012 out of 25 operating banking institutions â€" excluding Admore Kandhlela's People's Own Savings Bank â€" were compliant with the prescribed minimum requirements, while 16 asset management companies were within the required $500 000.
Earlier this year, the RBZ said that all non-conpliant banks faced closure effective April 2012 in the aftermath of Finance minister Tendai Biti's order for the apex bank to develop a merger framework for banks failing to meet the deadline.
Meanwhile, the RBZ on Thursday bade farewell to retiring deputy governors Edward Mashiringwani and Nicholas Ncube.
While the former had served the debt-ridden institution for 31 years, businessman and farmer Ncube is leaving after seven years.
A Master's in economics holder, Ncube is a former Finance ministry permanent secretary as well as CEO of the Zimbabwe Investment Authority.
On his own, Mashiringwani had served three governors and no less than seven finance ministers, including Bernard Chidzero, Ariston Chambati, Herbert Murerwa, Simba Makoni and Biti himself.
Source - ND