RBZ to decide on Genesis Bank

the bank would make a final statement this week on the state of the banks which were undercapitalised.
“We are finalising consultations internally and verifying the validity and seriousness of certain declarations and promissory claims that have been tabled by the affected banks.

“We will pronounce ourselves ‘definitively’ during the week beginning April 23, 2012,” he said.
Genesis is the only bank yet to announce a partnership deal for the purpose of raising capital.
But there are reports that Zimre Holdings, the bank’s major shareholder, has divested from the bank.

ZABG, which had a negative capital of US$15 million, concluded a deal with Treble and Khays, an investment vehicle linked to Mines and Mining Development Minister Obert Mpofu.

Royal Bank announced that Kenyan bank Commercial Bank of Africa had agreed to invest in it, enabling it to meet the central bank’s minimum capital requirements.
Dr Gono had indicated that by April 23, 2012 any bank that failed to meet the capital thresholds would be closed.
Banks had been given up to April 1, 2011 to meet the requirements or risk losing their licences.

A number of banks have been struggling to meet the requirements set by the RBZ of US$12,5 million and US$10 million for commercial and merchant banks, respectively.

When inviting indigenous Zimbabweans to invest in troubled banks, Dr Gono said it crossed the monetary authorities’ minds that some of the youth empowerment and special industry recovery and indigenous funds available would be channelled through such banks to support their stability.
Dr Gono said relevant ministries and agencies could make an urgent approach directly to                             the shareholders of Genesis or the RBZ to facilitate                a transformative ownership move and capitalisa-tion.

He said some of the struggling banks could be transformed with Government support.
Dr Gono added that Zimra, Zesa, NRZ, Zinara and other parastatals could be persuaded to support these banks with their deposits, instead of concentrating them in the so-called safe havens — the foreign-owned banks.