Genesis Investment Bank voluntarily surrenders banking licence
2012 June 12 01:44:35 | 2349 Views
- Ingabe ikuphatheleni i-MDC, njalo kusizani ukuyivotela? | 2013 May 13 17:03:55 | 3037 views
- Ikuphatheleni iMDC, kusiza ngani ukuyivotela? | 2013 May 08 19:28:47 | 2842 views
- MDC-T on course | 2013 March 27 14:05:12 | 6741 views
- People will vote for a party with sustainable economic programmes | 2013 March 04 02:36:52 | 7528 views
- Introducing: Election (2013) campaign articles | 2013 March 02 11:08:41 | 6102 views
- Rainbow Airlines seeks licence to fly in Zimbabwe | 2013 April 30 06:31:29
- Zim drivers' licence App launched for PC and smart phones | 2013 April 03 21:40:31
- Mobile licence fees raised | 2013 March 13 09:49:41
- Zimbabwe geared for fresh phase of Australian investment | 2013 February 07 15:46:26
- Kingdom voluntarily surrenders stockbroking licence | 2013 February 07 09:26:59
- Kasukuwere denies Zimbabwe indigenisation policy changes | 2013 April 24 16:02:19 | 9298 views
- Banks gang up against EcoCash | 2013 February 04 09:50:06 | 9169 views
- DHL workers panic | 2013 February 08 18:14:00 | 7168 views
- Mangoma steps down as M&R CEO to join Zimplats | 2013 January 24 16:04:34 | 6914 views
- Gono warns about SA imports | 2013 February 06 21:32:00 | 6758 views
The central bank placed Interfin Bank Limited under the curatorship of Mr Peter Bailey of KPMG Chartered Accountants after determining that it was not in a safe and sound financial condition.
RBZ Governor Dr Gideon Gono yesterday said: "Board of Directors of Genesis Investment Bank met and resolved to voluntarily surrender the institution's banking licence in line with Section 14 (4) of the Banking Act [Chapter 24:20].
"This follows failure by the institution to raise the requisite minimum capital from over 20 different potential inventors whom the bank tried to engage since 2009."
"The bank's Board of Directors has failed to steer the institution out of numerous deficiencies including gross undercapitalisation [$3,2 million]; persistent losses; poor asset quality; paltry deposit base; and chronic liquidity challenges.
"As such, there is no prudential basis for the continued existence of the bank.
"Accordingly, the Reserve Bank of Zimbabwe has closed Genesis Investment Bank and commenced proceedings for the liquidation of the institution," said Dr Gono.
On the other hand, Interfin Bank was placed under recuperative curatorship for a period of six months.
Dr Gono said the direction was served in accordance with provisions of the Banking Act, [Chapter 24:20].
"The Reserve Bank took this action upon determining that Interfin Bank Limited is not in a safe and sound financial condition.
"In particular, the unsafe and unsound condition of Interfin Bank Limited is attributable to inadequate capitalisation, concentrated shareholding and abuse of corporate structures, high level of non-performing insider and related party exposures, chronic liquidity and income generation challenges, poor board and senior management oversight, as well as violation of banking laws and regulations," he said.
Dr Gono said the primary purpose of the curatorship is to protect depositors, preserve the assets of Interfin Bank Limited and protect the stability of the financial system.
One of the consequences of placing Interfin Bank Limited under the management of a curator, he said that the institution's legal proceedings and the execution of writs, warrants, summons, is now stayed unless the High Court otherwise grants leave.
"Another consequence is to suspend the powers of every director, officer and shareholder of Interfin Bank Limited, except to the extent that the curator may permit them to exercise such powers.
"The curator will takeover and assume the management of Interfin Bank Limited in such a manner as he considers prudent and most likely to promote the interests of the institution, its depositors and creditors."
Dr Gono implored the public to be patient to allow for a smooth handover takeover in terms of the due process.
He said the handover-takeover process entailed securing the bank's assets and records, ascertaining the exact balances of the institution's assets and liabilities, drawing the institution's statement of affairs at the beginning of the curatorship period, facilitate effective control over the bank's ICT infrastructure and ensuring availability of adequate backup and business continuity arrangements.
The curator will recommend to the Reserve Bank how the financial situation of Interfin Bank Limited should be resolved. Dr Gono said RBZ has taken this action because it considers it to be in the best interests of depositors and creditors, and of Interfin Bank Limited itself and also of the banking sector in general.
Interfin Bank was facing liquidity challenges and was being sued by several clients seeking to recover $30 million in deposit funds.
Genesis was one of the few banks, which did not succeed in courting credible investors to meet minimum capital requirements set by the central bank.
AFP | 2013 May 22 | 108 Views
Delta Milayo Ndou | 2013 May 22 | 146 Views
Sports reporter | 2013 May 22 | 511 Views
Masowe eChishanu | 2013 May 22 | 526 Views
amnesty.org | 2013 May 22 | 444 Views
New Ziana | 2013 May 22 | 284 Views
Ndou Paul | 2013 May 22 | 564 Views
Ndou Paul | 2013 May 22 | 743 Views
Staff reporter | 2013 May 22 | 920 Views
Den Moyo | 2013 May 22 | 1518 Views
Staff reporter | 2013 May 22 | 1928 Views
Staff Reporter | 2013 May 22 | 862 Views
Own correspondent | 2013 May 22 | 1197 Views
Staff reporter | 2013 May 22 | 2658 Views
Joshua Mhambi | 2013 May 22 | 2141 Views
Staff reporter | 2013 May 22 | 3711 Views
Staff reporter | 2013 May 22 | 2243 Views
Staff reporter | 2013 May 22 | 2255 Views
Staff reporter | 2013 May 22 | 4108 Views
Staff reporter | 2013 May 22 | 1546 Views
Staff reporter | 2013 May 22 | 3099 Views
Business reporter | 2013 May 22 | 3366 Views
Staff reporter | 2013 May 22 | 2313 Views
Staff reporter | 2013 May 22 | 5197 Views
Blessing Ivan Vava | 2013 May 21 | 1503 Views
Staff reporter | 2013 May 21 | 4239 Views
Moyo Roy | 2013 May 20 | 5187 Views
TMZ | 2013 May 20 | 2209 Views
Emmanuel Ndlovu | 2013 May 18 | 2190 Views
Arts reporter | 2013 May 17 | 2111 Views