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banks to determine the way forward on a case-by-case basis.
Six banks have so far been found to be undercapitalised, with only some of them said to have submitted “fictitious” equity partners to beat the deadline.
But three banks out of the six – Kingdom Bank, Royal Bank and ZABG – have already been given a special dispensation, with new deadlines set for February 2012, in the case of Kingdom, and September next year, for the other two.
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Kingdom had met the new minimum capital requirements by last year, but was left exposed after the demerger with Meikles Africa. Royal Bank was relicensed after the unbundling of ZABG last September.. The latter retained its commercial banking licence.
Royal Bank resumed operations in February this year.
The other three are Genesis Bank, already believed to be in discussions with local potential investors, Ecobank, which is said to be regularising its capital position, and Renaissance Merchant Bank, which was placed under curatorship in June.
“Going forward, the Reserve Bank is going to meet all undercapitalised banking institutions, together with their boards and shareholders, to determine the way forward on a case-by-case basis,” said Dr Gono.
At least one asset management company had also failed to meet the deadline, out of 16 such firms.
Dr Gono said positive developments such as macro-economic stability and general economic growth had been a result of the country’s solid financial sector.
“The positive outcomes have rested on the continued resilience of the country’s banking and financial sector,” he said, “which has remained generally safe and sound, notwithstanding isolated cases of magnified vulnerability due to near-fraudulent behaviour by some errant bank management.
“The central bank, notwithstanding its serious undercapitalisation, will remain vigilant and resolute in ensuring that the country’s banking system is freed of all man-made blemishes.”
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