CBZ exceeds Zim’s regulatory capital threshold five years early

CBZ Bank handsomely pays its directors. THE country’s largest banking group, CBZ Holdings, has surpassed the Reserve Bank of Zimbabwe (RBZ)’s prescribed minimum capital requirement of US$100 million, the Financial Gazette’s Companies & Markets can  report.
Group chief executive officer, Never Nyemudzo, revealed that the commercial bank’s core capital base now stands at US$111 million, making CBZ the only bank in the country to surpass the central bank’s target for commercial banking institutions to have capitalisation of US$100 million with effect from 2020.
A huge core capital base indicates long-term stability for the group which is in a sector that has been characterised by bank closures particularly of indigenous banks.
“We have already surpassed the RBZ minimum capital requirement of US$100 million which is effective 2020,” said Nyemudzo.
The central bank last year introduced a three-tier system for banks in complying with the minimum capital threshold.
The tier system has different capital thresholds and functions with banks in the tier 1 strategic segment required to have minimum core capital of US$100 million with effect from 2020.

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