Most Zimbabwean banking institutions have surpassed the minimum regulatory capital requirements, reflecting stability, resilience, and soundness in the country’s financial system, according to the latest data from the Reserve Bank of Zimbabwe (RBZ).
The 2025 Mid-Term Monetary Policy Review Statement, presented by RBZ Governor Dr John Mushayavanhu on Thursday, reveals that 17 of the 19 operational banks reported core capital levels above the prescribed thresholds, highlighting a robust sector capable of withstanding economic shocks.
CBZ Bank led the market with a core capital of ZiG5,74 billion (US$213 million), over seven times the US$30 million minimum required for commercial banks. Stanbic Bank followed with US$154,6 million, Ecobank Zimbabwe at US$124,9 million, and CABS at US$118,7 million. These figures underscore the strong foundation of Zimbabwe’s largest financial institutions.
Under RBZ regulations, commercial banks must maintain at least US$30 million in core capital, while building societies and other deposit-taking institutions are required to hold a minimum of US$20 million. Thirteen institutions comfortably exceeded the commercial banking threshold, signalling broad stability across the sector.
A few banks, however, remain below or close to the regulatory minimum. ZB Building Society reported US$5,1 million, FBC Building Society US$25,5 million, and National Building Society US$40,2 million. Time Bank, with US$3,8 million, continues to be restricted to non-deposit-taking operations, and ZB Building Society is in the process of surrendering its licence.
Economist Donald Rudza noted that the figures reflect strong depositor and investor confidence in Zimbabwe’s financial system.
“Zimbabwe’s banking sector has shown remarkable resilience. Strong capital positions like those of CBZ and Stanbic provide reassurance that our financial system remains sound even under challenging macroeconomic conditions,” Rudza said.
Zimbabwe’s Banking Sector Shows Strong Capital Buffers, Signalling Stability and Resilience
The RBZ report highlights that strong capitalisation has enabled banks to expand lending activities. Loans and advances increased to ZiG67,5 billion as at June 30, 2025, up from ZiG55,9 billion in December 2024. Notably, 72 percent of this credit was directed to productive sectors. Agriculture received 16,8 percent, manufacturing 12,2 percent, and distribution 10,9 percent of total loans, indicating targeted support for sectors critical to economic recovery.
Credit quality improved during the period, with the non-performing loan (NPL) ratio declining to 2,9 percent from 3,4 percent in December 2024, well within the international benchmark of 5 percent. This demonstrates prudent risk management and effective monitoring by banks in a challenging economic environment.
Deposits in the sector also rose significantly, reaching ZiG112,8 billion, up from ZiG89,1 billion at the end of 2024. Foreign currency deposits accounted for 84,7 percent of total deposits, reflecting continued confidence in multi-currency banking arrangements. Liquidity remained robust, with the sector’s average prudential liquidity ratio at 56,8 percent, well above the 30 percent minimum requirement.
Profitability and Sector Outlook
Although the sector’s half-year profit fell to ZiG5 billion (US$184,07 million) for the six months ending June 30, 2025, down from ZiG10,4 billion (US$760,37 million) over the same period last year, analysts attribute the decline to tighter monetary conditions under recent reforms, including the introduction of the Zimbabwe Gold (ZiG) currency.
Analysts are optimistic that banks will continue to strengthen their positions as they reinvest earnings and adjust to evolving economic conditions. The data points to a resilient banking sector that is actively supporting Zimbabwe’s economic recovery, even amid challenging macroeconomic pressures.
“The available data paints a picture of a resilient and well-capitalised banking sector that is actively supporting Zimbabwe’s economic recovery,” Rudza said.
Overall, the RBZ’s findings demonstrate that Zimbabwe’s financial system is in a strong position to withstand shocks, maintain depositor confidence, and drive economic growth through strategic lending to key sectors. With most banks comfortably exceeding regulatory capital requirements and showing healthy credit growth, the sector remains a cornerstone of the country’s ongoing economic reform agenda.
Source- Bulawayo24
