ZABG, Royal Bank meet capital requirements

Reserve Bank Governor, Dr Gono has given the banks up to April 23, 2011 to obtain regulatory approvals in and outside Zimbabwe.
Banks had been given up to April 1, 2011 to meet capital threshold or risk losing their banking licences.
Giving an update on the recapitalisation of banks soon after bidding farewell to two outgoing deputy governors, Dr Gono said Genesis could go either way and called on indigenous Zimbabweans to rescue the bank.
Deputy Governor Edward Mashiringwane had served the bank for 32 years and worked under six finance ministers and three governors.
Mr Nick Ncube leaves the bank after seven years. Before his appointment as deputy governor, Mr Ncube served as the secretary in the Ministry of Finance.
Dr Gono said RBZ is finalising consultations internally and verifying the validity and seriousness of certain promissory claims by affected banks.
“Suffice to say though that it would appear that two banks namely ZABG and Royal Bank will escape the chop as they have succeeded in courting credible investors who have put their offers on the table,” said Dr Gono.
It is understood that ZABG, which had a negative capital of US$15 million concluded a deal with Trebble and Kays, an investment vehicle.
Kenyan bank, Commercial Bank of Africa also agreed to invest in Royal Bank, resulting in the bank meeting the central bank minimum capital requirements.
On Genesis, Dr Gono said it could be considered that youth empowerment and special industrial recovery and indigenisation funds could be chanelled to and handled through those banks to create an immediate new look and momentum in the ownership of and disbursement of youth empowerment fund.