adminrespectively.
Minimum capital requirements for building societies were also increased from US$10 million to US$80 million, finance and discount houses from US$7,5 million to US$60 million and US$1 million to US$5 million for micro-finance institutions.
These should be fully compliant by June 2014, but were required to meet 25 percent of the new capital levels by the end of this year and should be 50 percent compliant by June this year.
The financial institutions are further required to be 75 percent and 100 percent compliant by December 31, 2013 and June 30, 2014 respectively.
NSSA is a major shareholder in FBC Holdings, CBZ Holdings, ZB Holdings and Capital Bank.
“We are not going to allow a situation of putting money in individual banks which are competing,” said a senior official at the national pension fund.
“Our position has been delivered and we are waiting to hear from them (the banks). Some have managed to meet the first phase of minimum thresholds and some may be able to meet the second phase levels, but when it comes ‘hot’, which is very likely, they should not expect any bail out from NSSA. That position has been made very clear.”
In February, RBZ said 14 out of 22 banks had met the first level of minimum requirements. Five other banks had made “significant” progress towards complying while two others needed to come up with more “credible” plans, said the central bank.
FBCH, a shareholder in FBC Bank and FBC Building Society, said last year its plan was to merge its two units and then sell its 28 percent stake in Turnall Holdings.
Negotiations for the sale of Turnall equity have collapsed and FBCH is yet to advise the market on the way forward.
ZB Holdings issued a cautionary statement recently in which it said it was engaged in a transaction that could have a material effect on the company’s shareholding, but did not disclose much information.
Online Reporter