FBC Bank Limited and FBC Building Society, wholly owned subsidiaries of FBC Holdings Limited (FBCH), will merge their operations effective December 30, 2025. This follows the granting of requisite approval by the Ministry of Finance, Economic Development and Investment Promotion.
The two financial institutions are consolidating their operations in Zimbabwe to create a single, stronger banking entity, driven by regulatory requirements for increased capital.
The transaction is expected to deliver operational efficiencies, cost reduction through automation, digital transformation, enhanced competitiveness, improved customer service, and a broader product range, among other benefits.
In 2018, the Reserve Bank of Zimbabwe introduced tiered capital requirements for banking institutions, with full-service Tier I commercial banks required to hold US$100 million, Tier II banks (commercial, merchant, building societies) US$25 million, and deposit-taking microfinance banks (Tier III) US$7,5 million.
The merger, which has been under consideration for more than a decade, 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.
“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,” said Mr Mabeza.
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 30 December 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.-herald
