HomeLocal NewsTwo banks close down

Two banks close down

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Genesis Investment Bank Limited yesterday surrendered its banking licence after its failure to meet minimum capital requirements while Interfin Bank Limited was placed under curatorship due to liquidity challenges.

The Reserve Bank of Zimbabwe (RBZ) in a statement last night said Genesis had failed to raise capital from over 20 different suitors it had been courting since 2009.

“Further take notice that the Reserve Bank of Zimbabwe has commenced proceedings for the liquidation of the institution on account of the institution’s failure to comply with minimum capital requirements, critical solvency, liquidity and viability challenges,” RBZ governor Gideon Gono said.

In a separate statement, Gono said Interfin will be under the curatorship of Peter Bailey of KPMG Chartered Accountants for six months.

“Notice is hereby given that Interfin Bank Limited has today (yesterday) been placed under the management of a curator for a period of six months in terms of the Banking Act (Chapter 24:20),” he said.

“This follows a determination that the bank is facing critical liquidity challenges.

“Further take notice that Mr Peter Bailey of KPMG Chartered Accountants has been appointed the Curator of Interfin Bank Limited for a period of six months.”

According to a report by NewsDay’s sister paper, the Zimbabwe Independent a fortnight ago, an RBZ report exposed that the two banks had extremely low liquidity positions.

Interfin Bank, in particular, was the more exposed of the two, having a whopping $105 489 614 in loans and advances against a paltry $3 567 in its RTGS account, $137 422 in vault cash and $98 483 in its Nostros account. This rendered the bank technically insolvent as it had minuscule resources to fund demands from its customers.

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