adminit now fully capitalised.
Investigations by Herald Business revealed that the bank had not included its statutory reserves of US$1,5 million and another instrument amounting to US$3,5 million in its capital status presentation.
The Reserve Bank of Zimbabwe had said Ecobank had not met the capital adequacy threshold and that tit was in the process of regularising.
Managing director Mr Daniel Sackey yesterday told journalists that the bank, now issued with a commercial banking licence, does meet the central bank’s capital thresholds, without divulging details.
“As a bank, we do meet the capital requirements set by the reserve bank, and we have been working to capitalise as a commercial bank. We have meet the required US$12,5 million and we are solid and stable,” said Mr Sackey.
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Herald Business understands that Ecobank also has money in gold bonds, which the central bank does not recognise as capital.
Mr Sackey said that local shareholders had also injected shareholder funds to meet the minimum capital requirements.
Reserve Bank of Zimbabwe Governor Dr Gideon Gono last week said six banks had failed to meet the prescribed minimum capital threshold, risking losing their licences if they failed to submit realistic recapitalisation plans.
In his monetary policy statement, Dr Gono said as at June 30 2011, Ecobank had a core capital of US$8,7 million and was in the process of regularising its capital position.
But Mr Sackey, however, said the bank was targeting a capital base of US$20 million, which could result in the dilution of local shareholding.
Ecobank took over 70 percent of Premier Banking Corporation in January this year in a US$10 million takeover deal. The remainder is owned by a local consortium led by Mr George Manyere and Mr Walter Kambwanji.
The compliance deadline, which lapsed on December 31, 2010, had been extended to June 30 this year to allow troubled banks time to raise the required capital.
Meanwhile, Mr Sackey said in the first six months of the year the bank was concentrating on recapitalisation, restructuring and repositioning. He said the bank had completed upgrading its core banking system and telecommunications infrastructure.
Ecobank will soon open a new branch in the central business district. Two more branches are expected to open before the end of the year.
Online Reporter