Ezulwini – Central Bank of Eswatini Governor Dr. Phil Mnisi has told the nation that Eswatini Bank remains stable and operational, pushing back against public speculation that the institution is in crisis following the regulator’s decision to deploy a consultant to oversee a structured transformation programme.
Speaking at the Governor’s Annual Media Engagement Session held at Sibebe Resort on Friday, Dr. Mnisi offered extensive clarification about the Central Bank’s intervention at the indigenous financial institution, which has drawn concern from depositors and the broader public.
“A strategy bank has complied with regulatory requirements. It is meeting the financial ratios expected of licensed institutions,” he said.
The Governor explained that the Central Bank receives weekly reports from all licensed banks, allowing regulators to monitor liquidity, cash reserves and other key performance indicators. While Eswatini Bank has remained compliant, the regulator identified several structural challenges it considers necessary to address before they escalate.
Among the concerns is a costly deposit base that has driven up funding expenses. Non-performing loans (NPLs) are another issue, with Dr. Mnisi disclosing that they exceed 20 percent — well above industry expectations, though concentrated among specific clients and loan portfolios rather than spread across the institution. Technology modernisation has also been flagged as a critical priority, with the bank facing limitations because it does not benefit from the capital backing available to larger international banking groups operating in Eswatini.
The Governor said the Central Bank deliberately chose not to place the bank under administration.
“We decided not to use a curator or administration route because the numbers are still looking good,” he said.
An independent consultant, supported by a five-member technical team, commenced work on 1 April 2026 and is collaborating with the board and management to strengthen governance, improve operational effectiveness and restore long-term sustainability. Dr. Mnisi said encouraging progress has already been observed, particularly in loan recoveries.
“Our actions should give the public confidence that the regulator is aware of the challenges and is acting early to protect financial stability,” he said.
Leave a comment