Banking sector in good state: Baz
By Pepertua Rojasi
BANKERS Association of Zimbabwe president Ralph Watungwa has assured depositors that their funds are in safe hands due to the current sound standing in the financial services sector, the Daily News reports.
This comes as depositors are still sceptical of the banking sector following a number of financial crises that have rocked the Zimbabwean economy in the last two decades.
It also comes as numerous banks have collapsed with millions of their client’s funds after violating Reserve Bank of Zimbabwe (RBZ) statutes and regulations.
Speaking during a post-Budget business forum hosted by the Daily News in Harare on Monday, Watungwa said local banks’ capitalisation was at an acceptable level.
“The sector is in a good place and the capitalisation is sound. As banks, we want to understand how our customers operate in order to manage the issue of overstocking.
“Our capitalisation is reasonable, l won’t say strong. . .” said Watungwa.
Currently, the RBZ’s capital requirements for large indigenous banks and all foreign banks stands at minimum equivalent to US$30 million and US$20 million for commercial banks, merchant banks, building societies, development banks and finance and discount houses.
All deposit-taking institutions are required to have a capital requirement of US$5 million while micro-finance institutions must have US$25 000.