Source: FBC Bank, building society ready to merge operations – herald
Nqobile Bhebhe
Zimpapers Business Hub
FBC Bank Limited and FBC Building Society, wholly-owned subsidiaries of FBC Holdings Limited (FBCH), will merge their operations effective December 30, 2025.
This comes after the financial institutions obtained the requisite approval from Treasury.
FBC Bank and the building society are merging operations in Zimbabwe to create a single, stronger banking entity, driven by regulatory requirements for increased capital.
It is expected that the transaction will drive operational efficiencies, cost reduction through automation, digital transformation, enhanced competitiveness, better customer service and a wider product range, among other benefits.
In 2018, the Reserve Bank of Zimbabwe set tiered capital requirements for banking institutions, with full-service Tier I commercial banks needing US$100 million, while Tier II banks (commercial, merchant, building societies) need US$25 million and deposit-taking microfinance banks (Tier III) require US$7,5 million.
The merger, which has been under consideration for slightly over 10 years, will result in the dissolution of FBC Building Society as a distinct legal entity.
The internal restructuring exercise will not alter the shareholding structure of FBC Holdings Limited, introduce new risks or change the group’s financial outlook.
FBC Bank is registered as a banking institution under the Banking Act (Chapter 24:20), while FBC Building Society is registered under the Building Societies Act (Chapter 24:02).
In a trade update to stakeholders, group company secretary, Mr Tichaona Mabeza, said the approval was published in the Government Gazette on December 12, 2025, in line with Section 25 (4) of the Banking Act (Chapter 24:20).
“Following the publication in the Government Gazette on 12 December 2025 and in accordance with Section 25 (4) of the Banking Act (Chapter 24:20), the FBC Group has notified stakeholders that the Minister of Finance, Economic Development and Investment Promotion has granted approval for the merger of FBC Bank Limited and FBC Building Society,” said Mr Mabeza.
“This approval follows the joint application submitted by the two institutions in terms of Section 25(2) of the Act, seeking authorisation for the proposed consolidation.
“FBCH is therefore pleased to confirm that the necessary statutory approval has been obtained, enabling the group to proceed with the integration of the two institutions in line with the approved restructuring programme.”
Mr Mabeza said the merger was structured as an asset and liability transfer under a formal restructuring agreement between the two institutions.
To facilitate the transaction, all assets and liabilities related to FBC Building Society’s core banking business will be transferred to FBC Bank, while the building society’s non-banking operations will be separated and transferred to a newly designated entity.
He noted that upon completion of these transfers and the requisite regulatory processes, FBC Building Society will cease to exist as a separate legal entity.
“The merger will be operationally effective on December 30, 2025. The integration process is taking place in close consultation with all regulatory authorities to ensure a smooth transition for customers, employees, and stakeholders,” said Mr Mabeza.
He further emphasised that the internal restructuring does not alter the shareholding structure of FBCH, nor does it introduce new risks or change the group’s financial outlook.
Instead, he said, the transaction is expected to enhance operational efficiency, streamline regulatory compliance and strengthen the group’s strategic positioning in the financial services sector.
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