{"id":78373,"date":"2023-05-29T21:51:06","date_gmt":"2023-05-29T19:51:06","guid":{"rendered":"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/micro-financiers-struggle-to-raise-us5m-regulatory-requirement"},"modified":"2023-05-30T00:21:33","modified_gmt":"2023-05-29T22:21:33","slug":"micro-financiers-struggle-to-raise-us5m-regulatory-requirement","status":"publish","type":"post","link":"https:\/\/www.africa-press.cc\/zimbabwe\/all-news\/micro-financiers-struggle-to-raise-us5m-regulatory-requirement","title":{"rendered":"Micro-financiers struggle to raise US$5m regulatory requirement"},"content":{"rendered":"

Africa-Press – Zimbabwe. <\/strong><\/span>ONLY two out of the seven operational deposit-taking microfinance institutions (DTMFIs) have complied with the US$5 million regulatory capital requirement set by the central bank, a new report reveals.<\/p>\n

The Reserve Bank of Zimbabwe (RBZ) set December 31, 2022 as the deadline for DTMFIs to comply with the new minimum capital requirement of Zimbabwe dollar equivalent to US$5 million.<\/p>\n

But a new report compiled by the apex bank reveals that only two out of the seven micro-financials had complied with the requirement, forcing the RBZ to extend the date to December 31, 2023.<\/p>\n

\u201cCore capital for deposit taking micro-finance institutions increased by 16,71% from US$9,93 billion as at 30 September 2022 to US$11,59 billion,\u201d the RBZ said in a micro-finance industry report for the quarter ended December 31, 2022.<\/p>\n

\u201cTwo out of the seven operational deposit-taking micro-finance institutions complied with the new minimum capital requirement of ZW$ equivalent to US$5 million effective 31 December 2022.<\/p>\n

\u201cCompliance with the minimum capital requirements by non-compliant deposit-taking micro-finance institutions was extended by a further 12 months to December 31 2023, to allow for completion of the recapitalisation processes currently underway.<\/p>\n

\u201cThe bank continues to monitor progress towards compliance with both minimum capital requirements and economic capital to facilitate underwriting of more meaningful business.\u201d<\/p>\n

The report noted that non-compliant institutions were at various stages of implementing measures to raise their capital levels.<\/p>\n

In the period under review, total deposits for DTMFIs increased by 83,27% to $6,23 billion.<\/p>\n

The growth in deposits, the report notes, was mainly driven by foreign currency deposits of US$6,75 million, equivalent to $4,64 billion, which accounted for 74,47% of total subsector deposits.<\/p>\n

The subsector\u2019s prudential liquidity ratio increased to 189,52% due to increased deposit levels.<\/p>\n

In the quarter under review, there were 206 registered micro-finance institutions comprising 198 credit-only microfinance institutions and eight DTMFIs.<\/p>\n

The micro-finance industry recorded an aggregate equity of $35,1 billion, representing an increase of 60,59% compared to the prior period.<\/p>\n

The growth was largely attributed to organic growth and injection of additional capital by shareholders of some micro-finance institutions, in order to comply with minimum capital requirements of Zimdollar equivalent of US$25 000.<\/p>\n

The DTMFI subsector\u2019s aggregate core capital registered a 27,77% increase to $12,70 billion.<\/p>\n

\u201cThe increase in capitalisation was largely attributed to a combination of revaluation gains on investment property and foreign currency, organic growth and additional capital injections by some DTMFIs,\u201d the report said.<\/p>\n

The DTMFI subsector recorded a significant improvement in the aggregate net profit of $6,53 billion for the year 2022, as compared to a profit of $29,49 million recorded for the comparative period in 2021.<\/p>\n

\u201cThe profits were largely driven by revaluation gains on investment properties and financial assets denominated in foreign currency.<\/p>\n

\u201cThe lack of critical mass in underwriting business has heightened income generation risk at a few institutions in the subsector which have recorded operating losses during the quarter. Institutions are exploring various strategies for revenue enhancement and cost reduction.\u201d<\/p>\n

The subsector\u2019s average operational self-sufficiency ratio last year was 187,29%, down from 284,88% recorded in the previous quarter.<\/p>\n

For More News And Analysis About Zimbabwe<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Zimbabwe. ONLY two out of the seven operational deposit-taking microfinance institutions (DTMFIs) have complied with the US$5 million regulatory capital requirement set by the central bank, a new report reveals. The Reserve Bank of Zimbabwe (RBZ) set December 31, 2022 as the deadline for DTMFIs to comply with the new minimum capital requirement […]<\/p>\n","protected":false},"author":84,"featured_media":78372,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,6],"tags":[1493,2189,19],"class_list":{"0":"post-78373","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-all-news","8":"category-economy","9":"tag-africa-press","10":"tag-africa-press-zimbabwe-2","11":"tag-zimbabwe"},"yoast_head":"\nMicro-financiers struggle to raise US$5m regulatory requirement - zimbabwe<\/title>\n<meta name=\"description\" content=\"ONLY two out of the seven operational deposit-taking microfinance institutions (DTMFIs) have complied with the US$5 mill ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/micro-financiers-struggle-to-raise-us5m-regulatory-requirement\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Micro-financiers struggle to raise US$5m regulatory requirement\" \/>\n<meta property=\"og:description\" content=\"ONLY two out of the seven operational deposit-taking microfinance institutions (DTMFIs) have complied with the US$5 mill ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/micro-financiers-struggle-to-raise-us5m-regulatory-requirement\" \/>\n<meta property=\"og:site_name\" content=\"zimbabwe\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-29T19:51:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-29T22:21:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/zimbabwe\/sites\/14\/2023\/05\/sm_1685385595.684929.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/micro-financiers-struggle-to-raise-us5m-regulatory-requirement\",\"url\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/micro-financiers-struggle-to-raise-us5m-regulatory-requirement\",\"name\":\"Micro-financiers struggle to raise US$5m regulatory requirement - 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