adminBrighton Gumbo Business Reporter
THE proposed opening of a bank by the National Social Security Authority (NSSA) has been postponed to next month.
The pensions authority had initially said the bank will be operational by August.
Public Service, Labour and Social Services Minister Prisca Mupfumira said delays in the application process to the Reserve Bank of Zimbabwe (RBZ) had stalled progress.
She indicated that the building society would commence operations by mid-September.
“We’re still in the working with the Reserve Bank of Zimbabwe, which is taking it’s time to process our application to set up the bank. But we expect it to be operational by mid-month in September,” said Mupfumira.
The minister said while the process of applying for permission to set up the bank was ongoing, other stages such as the appointment of a board of directors, have been concluded.
The proposed bank is aimed at strengthening the authority’s portfolio and offering non-monetary incentives in the form of affordable housing loans for civil servants and low income workers.
The minister said about $5 million is expected to be injected as seed capital for the bank.
The submission of a bankable plan by NSSA to the RBZ comes after the monetary authority has tightened regulations for new entries into the financial sector in order to consolidate the prevailing stable conditions for banks.
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