Table 5: Banks Capital Adequacy Status

Table 5: Banks Capital Adequacy Status

Institution Declared Capital as at 31 December 2021 (ZW$) Declared Capital US$ Equivalent* (US$1:108.6660) Status of Compliance

African Century Limited

GetBucks Microfinance Bank Limited

Success Microfinance Bank Limited

534,874,192.80 4,822,185.35 Non-Compliant To meet through organic growth. 142,994,535.60 1,315,908.71 Non-compliant To meet through rights issue and organic growth 117,645,025.60 1,082,629.58 Non-Compliant To meet through shareholder capital injections.

Zimbabwe Women’s Microfinance Bank Limited

359,022,480.00 3,303,908.12 Non-Compliant To meet through shareholder capital injections. EmpowerBank Limited 254,067,830.33 2,338,061.86 Non-Compliant To meet through shareholder capital injections.

Lion Microfinance Limited

98,096,130.00 902,730.66 Non-Compliant To meet through shareholder capital injections and organic growth *The required minimum capital as at 31 December 2021 was ZW$ equivalent to US$5 million for Deposit-taking microfinance institutions.

91. It was noted that losses incurred by a few of the DTMFIs since inception has inhibited the growth while the disruptive effects of Covid-19 pandemic impacted on the general performance of some institutions.

92. The Bank is satisfied with the various recapitalisation initiatives being pursued as reflected by African Century Limited’s capital position that is marginally below the regulatory threshold while other DTMFIs are envisaged to comply by December 2022.

93. A total of 28 credit-only microfinance institutions were non-compliant with the minimum capital requirements of US$25 000 effective 31 December 2021. The non-compliant institutions are putting in place re-capitalisation strategies in order to comply with the requirements and to facilitate underwriting of more meaningful business.