adminNewly appointed Steward Bank chief executive Mr Kwanele Ngwenya, who officially announced the rebranding from TN Bank, said Steward Bank had exceeded the June 2013 minimum threshold.
“As you know, we are 100 percent owned by Econet Wireless, I am happy to say that the bank is well capitalised to the tune of US$75,1 million as at February 2013,” he said.
“By June 2013 we should have been at US$50 million, but we have already surpassed that. We have already met the December 2013 deadline, so we are very excited about the journey and definitely we will meet our capitalisation target by June 2014.”
Announcing the new minimum capital threshold last year, Reserve Bank of Zimbabwe Governor Dr Gideon Gono said that the increase was necessitated by the dynamic nature of the financial landscape, regulatory requirements, increasing competition and economic uncertainties, which have placed unprecedented pressure on banks to be adequately capitalised.
The central bank chief said banks with higher capital had greater loss absorption capacity and resilience to shocks. Minimum capital levels for commercial banks and merchant banks were raised from US$12,5 million and US$10 million, respectively, to US$100 million for both categories.
The central bank also raised minimum capital levels for building societies from US$10 million to US$80 million, discount and finance houses from US$7,5 million to US$60 million and US$5 million from US$1 million for asset management companies.
Each class of banking business was expected to have met 25 percent compliance with the new thresholds by December last year, 50 percent by June 2013, 75 percent by December 2013 and 100 percent by June 2014.
Mr Ngwenya said Steward Bank was now in the process of implementing visible changes to its branch network and would soon unveil new products.
Mr Ngwenya said Steward Bank’s name was chosen because it reflects its values and commitment to customers while its main colour -pink – represented wealth, wisdom, dignity, royalty, independence, creativity and trustworthiness.
Econet Wireless has already made sweeping changes at Steward Bank since buying out founding director Mr Tawanda Nyambirai to secure a controlling stake.
This followed an initial 45 percent stake the company acquired after advancing a US$20 million loan to recapitalise the then TN Bank.
According to Econet, the bank – which posted a US$10,4 million loss in the year to February 2013 – was acquired to support the mobile phone operator’s fast growing mobile money transfer, EcoCash, which had to be backed by a licensed banking unit.
Mr Ngwenya, who is a South African national, was appointed to the helm of Steward Bank early this year.
The Steward Bank boss previously headed First National Bank’s operations in Botswana.
The rebranded bank said while it would rationalise its physical presence in the country it would increase its footprint through alternative means.
Online Reporter