Deposit-taking microfinance institution, Getbucks Microfinance Bank expects to miss the minimum capital requirement deadline of 31 December 2021 and has since approached the Reserve Bank of Zimbabwe (RBZ) requesting an extension.
RBZ set the minimum capital level for deposit taking microfinance banks at US$5 million by end of December 2021.
However, Getbucks Microfinance Bank’s Limited inflation adjusted regulatory capital was ZW$ 192 million at close of quarter to September 2021.
The microfinance institution in its quarterly update said there is limited time left to meet the minimum capitalization levels which it intends to raise through its shareholders.
“Shareholders will pursue equity transactions to bridge the gap between the minimum capital requirement and the current regulatory requirement,” said Getbucks.
“However, given the limited amount of time to December 2021 it is unlikely that the regulatory capital will be met, and the regulator has been approached with a request to extend the deadline.”
The institution said it is strategically looking to increase its portfolio of foreign currency generating business leveraging on the Authorised Dealer license.
The bank’s profit after tax for the three-month period was 42 percent down at ZW$ 17 million in inflation adjusted terms from ZW$ 29 million realized comparative period as a result of the increase in the rate of inflation as the quarter progressed.
The loan book closed off at ZW$ 202 million compared to September 2020’s ZW$ 69 million due to increased funding lines.
