High-Level Summary Technical Assistance Reports

This paper highlights High-Level Summary Technical Assistance Report on implementation of the Basel II/III Capital Framework. The Financial Sector Stability Review, which was conducted in November 2018, identified areas requiring improvement and technical assistance in Zimbabwe’s regulatory and supervisory frameworks, including the need to strengthen the capital framework for the banking sector. With the support of the IMF, the Reserve Bank of Zimbabwe (RBZ) is planning to implement Basel III capital standards, considering Zimbabwe’s specific circumstances and applying proportionality. The mission reviewed Zimbabwe’s capital framework, which includes laws and regulations, identified areas for updating capital requirements, and discussed them with the RBZ management. The mission also made recommendations for drafting amendments that align primarily with the Basel III capital framework, particularly focusing on standardized approaches. The mission highlighted concrete steps that should be considered in drafting new regulations. The RBZ committed to draft the regulations’ package, which will be reviewed during the next technical assistance mission.