Published: 31 January 2014

The Reserve Bank of Zimbabwe has advised banks that are struggling to meet the minimum capital requirements to downgrade and obtain deposit taking micro-finance licences.

The central bank on Wednesday raised minimum capital requirements for micro-finance institutions by 100 percent to $20 million saying such institutions should be compliant by 2020.

This is significantly lower than $100 million that commercial banks and building societies should have as minimum capital by 2010.

Acting RBZ governor Charity Dhliwayo expressed concern over failure by some banks to provide credible recapitalisation plans.

Dhliwayo also noted with concern that some banks were reluctant to implement viable options at their disposal such as consolidating operations or merging.
- herald

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