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The RBZ governor, Dr Gideon Gono, recently announced that minimum capital requirements for financial institutions had been raised, with commercial banks now required to have a minimum capitalisation of $100 million.
Banks are supposed to be fully compliant with the new requirements by 20 June 2014 although they should have raised their minimum capital threshold to $25 million by the end of the year.
ZABG chief executive Mr Stephen Gwasira said the group was confident measures to raise its capital levels would be successful.
The bank is majority-owned by Trebo and Khays (Pvt) Ltd which recently injected capital to ensure that it met the minimum capitalisation of $12,5 million.
Before the coming in of the new investor, ZABG was one of the banks facing closure as its shareholder funds were in the negative. Trebo and Khays capital injection saw capital levels rising to $18 million.
“In view of the need to continue to strengthen the bank’s statement of financial position and underwrite capacity and meet the recently announced minimum capital requirements of $100 mnillion, ZABG Bank has started working on initiatives aimed at raising more capital. The bank is confident that these efforts will be successful,” Mr Gwasira said in a statement accompanying the group’s financial results for the half year to 2012.
ZABG has appointed a new board of directors to reflect the new shareholding structure. The board is chaired by lawyer Mr Farai Mutamangira.
Meanwhile, ZABG suffered a loss of $1,1 million in the six months to 30 June compared to a loss of $2,6 million the same period last year.
Online Reporter