Mkombozi Commercial Bank (MKCB) has launched the second phase of ‘share selling’ Tanzanians are implored to seize the investment opportunity that, as encouraged by Bank of Tanzania (BoT) will also ensure better access to financial services.
Speaking on Tuesday to reporters at the on going Dar es Salaam International Trade Fair in Dar es Salaam the MKCB Managing Director Edwina Lupembe said, her bank intends to educate more Tanzanians on the importance of financial services to the growth of our economy.
Mkombozi reports intentions to have a good number of Tanzanians take part in the bank ownership through share acquisition. But more than just a patriotic drive the bank like all other commercial banks is walking on hot coal to raise their capitol a directive from the BoT which has ordered an increase from 5bn/- to 15bn/- of core capitol.
The move is a monetary policy attempt to excite the economy by injecting more capital into circulation. I f the Central bank does not also raise their reserve ratio ( amount banks are required to have in saving at the central bank) then the banks will have more borrowing capitol and thus lend more at reasonable rates.
According to her Mkombozi has already sold 10.1bn/- in shares and the bank is enjoying the positive publilc response. New branches are mushrooming across the city with the banks fourth branch in the city scheduled for opening in Kariakoo in the coming month.
“We have 50bn/ in nominal capital…” said a proud Edwina Lupembe and layed out their success in numbers, “…the bank’s resources have grown to 33.6bn/- last year from 25.1bn/- in 2010, loans issued increased to 11.5bn/- last year from 6.6bn/- in 2010, and income earned from loans has increased to 2.9bn/- last year from 11.3bn/- in 2010.”
Her bank is none the less avid to limit the share holding capacity with a minimum number of share hold set at 100 and ceiling of not more than one percent of the bank’ score capital total.
Lupembe urged Tanzanians to visit trade fairs in a bid to broaden their knowledge in the financial services industry. The Bank, in collaboration with other institutions in the region, has taken the initiative to educated small entrepreneurs on the importance of forming groups, through which they can access loans.
Ernst and Young 2011 analysis views the bank as ‘competitive’ what with a portfolio yield showing 17 percent growth for the year the bank is on to a good start.
Its rates paid to funds are 5 percent of premium compared to an average 6.7 to 8 percent set by their competitors. It has an attractive 4.05 percent for nonperforming loans, gross loans and advances against 11 and 33 percent recorded by other banks.
MKCB, which started its operations in 2009 currently has three branches in the country, two in Dar es Salaam (with another due to open soon) and one in the Mwanza region.