Harare, (New Ziana) – The Reserve Bank of Zimbabwe (RBZ) has extended by one year to December 2021 the period within which banks should meet the new minimum capital thresholds.
The development expected to enhance stability of the financial sector.
The central bank early this year gave banks, in their various categories a December 2020 deadline within which to meet the new capital thresholds.
But on Friday the deadline was extended to December 2021, given challenges the economy and businesses are facing in light of the Covid-19 outbreak.
“Cognisant of the prevailing challenging environment exacerbated by the negative impact of the COVID-19 pandemic, the Bank is extending the deadline for compliance with the requirement for meeting the minimum capital levels by one year from 31 December 2020 to 31 December 2021,” central bank governor, Dr John Mangudya said.
“In this regard, banking institutions are required to submit to the Bank updates of capitalisation plans by 31 December 2020 and 30 June 2021.”
Tier 1 banks, which are large commercial and indigenous banks, are expected to have a minimum capital threshold of US$30 million or equivalent in local currency, while Tier 11 banks which include smaller banks, discounts and finance houses must have at least US$20 million.
The requirement for deposit taking micro-finance institutions has been set at US$5 million and US$25 000 for credit only microfinance institutions.