Genesis to start commercial banking
New Ziana.
GENESIS Investment Bank, a subsidiary of Genesis Financial Holdings Limited is set to commence commercial banking operations this year after it was granted a licence by the Reserve Bank of Zimbabwe.
Genesis Financial Holdings is also a subsidiary of diversified insurance concern Zimre Holdings Limited. Genesis Investment Bank was initially established as an accepting house.
ZHL group chief executive Albert Nduna told New Ziana on Thursday the bank was expected to open its doors to the public by end of the year.
"We are in the process of acquiring US$12, 5 million to meet Reserve Bank of Zimbabwe’s minimum capital requirements before we can start operations," he said.
"We are hoping to get some of the funds from our regional operations since they are performing well," he added.
Nduna said the group was also looking for a suitable site to build the bank’s premises. The accepting house currently operates from Zimre centre in the capital.
Genesis Investment Bank will become the third commercial bank to open this year after TN Bank and BancABC which were also granted commercial banking licenses.
Zimbabwe has 15 commercial banks, six merchant banks and four building societies.
Meanwhile, Nduna said the group was working on recapitalising its insurance business to improve capacity in anticipation of increased business volumes.
"Our insurance units would require capitalisation as we have positive expectations about the insurance industry following dollarisation of the economy," he said.
Nduna said the group had a "pleasing performance" in the first quarter of this year due to contributions from reinsurance and regional operations.
Regional operations contributed 40 percent to operating profit of US$14 million.
The group has regional operations in Malawi, Uganda, Zambia and Mozambique. — New Ziana.
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