|Consider merging, banks urged|
|Tuesday, 07 August 2012 17:31|
Analysts say financial institutions should work towards attracting international and local partners to meet the newly set US$100 million minimum threshold.
As pressure continues to mount on financial institutions towards meeting the new minimum thresholds, mergers are looming while other financial institutions have already made their plans clear.
Some financial institutions have been struggling to raise the previous cash requirement of US$12,5 million for commercial banks while building societies have also faced challenges.
With the coming on board of new and higher minimum capital requirements, more institutions are likely to fold.
Financial expert, Ms Chiedza Dziva said financial institutions should consider mergers and takeovers to ensure that they raise the much needed capital requirements as it is vital towards improving stability in the sector.
Economic commentator, Mr Abel Mubango said with a strong capital base, financial institutions will be able to review downwards their exorbitant interest rates.
He added that engaging regional financial institutions is critical for the survival of small banks.
Since the announcement of the new minimum threshold, three financial institutions have indicated their desire to raise the much needed capital while two were already within range of the expected figures.