Nampula: Government working to pay off its debts to companies
The minimum capital required for banks was been increased 25-fold, from MT 70 mn ($1 mn) to MT 1,700 mn ($25 mn). The Bank of Mozambique said banks would have three years to comply with the new rule. In addition, the solvency ratio (capital as a proportion of liabilities) is increased from 8% to 12%.
The follows the collapse of two small locally owned banks, Nosso Banco which has been closed, and Moza Banco which is being restructured. This will basically force the merger of small banks and mean that all Mozambican banks will need to be relatively large and foreign controlled.
There are currently 19 banks operating in Mozambique, but only five – Millennium Bim, BCI, Barclays Bank, Standard Bank and Banco Único – can meet the new requirements. (Savana, 14 Apr, citing Africa Monitor Intelligence) KPMG’s 2016 Mozambique Banking Sector Survey, issued in October 2016, is the best detailed survey: http://zitamar.com/wp-content/uploads/2017/04/KPMG-Banking-Survey-2016-Final.pdf (English & Portuguese)Source: News reports & clippings