The Governor of the Central Bank of Eswatini (CBE), Dr. Phil Mnisi, says from the five bank applications currently being assessed, two of them have reached the maturity phase.
The Governor disclosed this during a media training facilitated by the CBE held at Nkonyeni Golf Estate last week.
Worth noting is that last year, the CBE published a Notice stating that it is looking into issuing 5 types of banking licenses. These are;
Category A- Large Commercial and International Bank
Category B- Medium-Sized Commercial Banks
Category C- Regional & Small Finance Institutions
Category D- Restricted License Banks
Category E- Islamic Bank
The opening of the banking sector forms part of the CBE’s current strategy, which is meant to cast the net wide and attract qualifying and credible institutions.
It is important to note that the maximum financial requirement for obtaining a banking license is E50 million, while the minimum is E8 million.
The Governor, when speaking during the media training, reiterated their drive to open the banking industry, stating that there is room for more banks to operate in the country.
“There is a misconception that Eswatini has too many banks, but this is not the case. The more banks we have, the better it is for consumers as it increases competition, leading to improved services and reduced banking costs,” he noted.
Moreover, the Governor then passionately implored EmaSwati to be more patriotic and support local business people who are interested in applying for a banking license.
“The current commercial banks operating in the country make substantial profits, and as the Central Bank, we believe that it is time that we open up the space for more players to share the pie. Most importantly, local business people should also apply for a banking license,” he stressed passionately.
The Governor stated that even though they are in full support of licensing more banks in the country, they will not relax their regulatory assessment and processes.
Mnisi outlined the four requirements they look for when they consider granting a banking license, which are;
1.Credibility of The Institution
2.Sound Governance
3.Funding of the Institution
4.Sound Systems That Will Protect Depositors’ Funds