5 Major Zimbabwean Banks Fail to Raise US$30M Minimum Capital Requirement

As of yesterday 5 major banks and financial institutions in Zimbabwe that failed to meet the US$30 million benchmark prescribed by the Reserve Bank of Zimbabwe were put under central bank probation.

Shareholders and investors at these financial institutions failing to meet new minimum capital requirements, will have to forgo dividends until their firms comply with the central bank’s directives. The banks are prohibited from paying dividends without the central bank’s approval.This announcement was made by the Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya said on Tuesday January 8, 2022.

The institutions that failed to meet the US$30 million benchmark by December 2021 as prescribed by the RBZ are:

AFC Commercial Bank

Nedbank Zimbabwe

CBZ Building Society

National Building Society

ZB Bank

It is a shame that these major banks have failed to meet the 30 million requirement. These institutions can surely do better if they focus on deepening client relationships by putting clients at the center of operations, investing in technology, driving operational efficiencies, strengthening the risk and control environment and practicing high standards of corporate governance.