Loading...
See More

New Standard Bank boss speaks out on Zim

Mar 08 2013 09:32 Malcom Sharara, Fin24’s correspondent in Zimbabwe

Standard Bank Group's new joint CEO Ben Kruger.

Company Data

STANDARD BANK GROUP LIMITED [JSE:SBK]

Last traded 129.57
Change 0.28
% Change 0.00
Cumulative volume 376671
Market cap 209.71bn

Last Updated: 20/10/2014 at 11:22. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Standard Bank seals Argentina deal

Standard Bank to appeal R528m fine

Standard Bank bids farewell to Maree

Standard Bank to cut London jobs

Implats Zim deal in jeopardy

Zimplats in storm over empowerment deal

Zim indigenisation row widens

 
Harare - Standard Bank Group [JSE:SBK] wants to keep a majority stake in its Zimbabwean unit Stanbic Bank, its new joint chief executive said on Thursday.
 
Foreign companies, including banks, are being asked to cede 51% to indigenous Zimbabweans under the controversial Indigenisation and Economic Empowerment Act.
 
According to Reuters, Standard Bank believes giving away majority ownership will make it difficult for the bank to deploy new technology as well as raise new capital when the need arises.
 
New joint CEO Ben Kruger was quoted as saying: "It is difficult for us not to have the majority shareholding. You cannot deploy the right technology and it becomes very complicated if you need to raise capital.
 
"If anything goes wrong from a macro point of view in a country, you need to mobilise liquidity and capital very quickly to solve that equation."
 
Stanbic Bank Zimbabwe is wholly owned by Standard Bank and will have to cede 51% to locals if Empowerment Minister Saviour Kasukuwere prevails against the Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono, who is opposing the equity model if favour of what he calls the supply side model.
 
President Robert Mugabe also spoke in favour of banks: "For that one (financial services sector) you can go 50/50, or you can agree on a ratio that is sustainable and equitable. It’s not in every case that we must apply the 51/49."
 
Kruger said Standard Bank has already presented Harare with proposals on how it would increase local shareholding, although he declined to give details.
 
Meanwhile the RBZ on Thursday extended the deadline for commercial banks to reach the US$100m capital thresholds from 2014 to 2020.
 
Gono said the extension was is in response to concerns raised by some foreign investors interested in investing in the banking sector, but wary of the indigenisation and empowerment regulations compelling foreign-owned firms to cede a 51% to locals.
 
Gono said minimum requirements are not the solution for a safe and sound banking system, hence the need for engagement to reach common ground.
 
“Let me make it clear that we are more than aware that capital on its own is not the panacea for creating a stable banking sector in the country,” said Gono.

 - Fin24
 

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...