Banks

From Economic Views from Zimbabwe Mon Dec 9 2013, 08:12:00

RBZ and Min of Finance got all the banks together in a meeting yesterday to tell them that they have until the 1st March to restore their correct Loan to Value limits and Reserve limits or they will be shut down. Some banks like Kingdom are scrambling around trying to arrange a merger to fix the books in a sense, but have been told that merger will have to tick all the right boxes to be considered legitimate. There are about 5 banks most likely to be caught out by this hard line approach, and have been told if they can't reach the targets they will have to operate as microfinance companies.

2012 will be a shake out for the banks and probably a difficult year to find capital. CABS is a relatively safe bet but have reached their 20% mortgage lending limit already so not issuing mortgages anymore. Interesting times.

Caz

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