admin
Business Reporter
GetBucks Microfinance Bank Limited says it is considering migrating the company’s shares listed on the Zimbabwe Stock Exchange (ZSE) to the US dollar denominated Victoria Falls Stock Exchange (VFEX) in line with the firm’s recapitalisation plans.
The microfinance bank has been negotiating for a US$5 million recapitalisation package to enable it to meet the required minimum capital threshold set by the Reserve Bank of Zimbabwe (RBZ).
According to the central bank, Tier 3 deposit-taking microfinance banks should have a minimum capital of US$5 million while Tier 1 banks, large indigenous commercial banks and all foreign banks are required to have US$30 million minimum capital.
Tier 2 commercial banks, merchant banks, building societies, development banks, finance and discount houses are required to have a US$20 million minimum capital.
” . . .While negotiations for a recapitalisation are still in progress, the board is considering migration of the company’s listed securities from the ZSE to Victoria Falls Stock Exchange, if successful may have a material effect on the price of the securities,” it said in a statement.
The GetBucks Microfinance Bank is a Zimbabwe-based financial service company with operating segments that include Consumer Lending which provides individual public sector consumer loans. Small and Medium Enterprise (SME) Lending segment provides loans and other credit facilities for corporate clients.
The RBZ in its 2022 Monetary Policy Statement (MPS) extended to December 31, 2022 the deadline for non-compliant banks to meet the regulatory prescribed minimum capitalization levels largely due to the impact of the Covid 19 pandemic.
According to the MPS, out of 18 operating banking institutions, (excluding POSB with no minimum statutory requirement), 13 banks have complied with the new minimum capital requirement for their chosen capital tier segment.
The Microfinance Bank grew its total assets by 44 percent to $1 billion for the year ended 31 December 2021 compared to $70 million in prior year, as a result of a diversified asset portfolio made up of property carried at fair value and monetary assets in the form of loans.
Online Reporter