Banking sector capitalisation increases to $1.24bn

Banking sector capitalisation increases to $1.24bn
Published: 18 October 2017
Banking sector capitalisation increased to $1,24 billion by end of June 2017 from $1,22 billion recorded in the first quarter.

Parliament's Budget Office (PBO) said all the banking institutions were adequately capitalised and complied with minimum capital requirements.

CBZ managed to hit $238,90 million core capital by June 30, 2017 from $237,58 million recorded in the first quarter. Stanbic Bank increased core capital by $6,7 million in the second quarter while BancABC and CABS showed a decline in capitalisation levels.

Although the liquidity ratios showed an improvement, the banking industry continued to experience underlying shortages of physical cash.

The PBO said cash shortages are a result of structural challenges facing the economy which include a high fiscal recurrent expenditure mostly employment related costs which generally increases the demand for cash.

In the second quarter, total deposits were $6,99 billion which is 6,7 percent higher than $6,55 realised in the first quarter. The maximum effective lending rate as at June 30, 2017 averaged at 11,94 percent from the 15,7 percent recorded by the end of December 2016.
- dailynews
Tags: Banking,

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