What really, is going to break the camel’s back as far as the banks are concerned, is the main issue of capital adequacy ratios or capital requirements.
Capital adequacy ratio is a measure of banks’ capital expressed as a percentage of a bank’s risk weighted exposure.
Also known as capital to risk weighted assets ratio (Crar), this risk is used to protect depositors and promote the stability and efficiency of financial systems around the world.
There are two types of capital that are measured: (i) Tier One Capital, which can absorb losses without a bank being required to cease trading. (ii) Tier Two Capital, which can absorb losses in the event of a winding-up and so provide a lesser degree of protection to depositors.
This article relates to Zimbabwe's 51% bank indigenisation programme.