HomeBusinessRBZ moves to rescue Allied Bank assets

RBZ moves to rescue Allied Bank assets

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THE Reserve Bank of Zimbabwe (RBZ) has moved to protect the assets of Allied Bank pending the liquidation process.

TARISAI MANDIZHA
BUSINESS REPORTER

RBZ cancelled Allied Bank’s licence on January 8 after establishing that the institution was no longer in a safe and sound condition.

The move to protect Allied Bank’s assets comes at a time the Zimbabwe Amalgamated Housing Association (Zaha) had been attaching assets of the institution in a bid to recover over $1,5 million.

Zaha was granted an order last year to attach the assets. Zaha president Killer Zivhu told NewsDay that the Messenger of Court was stopped by RBZ from attaching the property.

RBZ governor John Mangudya told NewsDay the central bank was proceeding with liquidation of the bank.

“In this regard, a court application for the liquidation of Allied Bank Limited was lodged in the High Court. Accordingly, in terms of section 210 of the Companies Act [Chapter 24:03], the date of lodging an application is effectively the date of commencement of winding up. In terms of section 213(b) of the Companies Act, all attachments and writs put in force against the assets of the company after the winding-up shall be void, hence the execution you refer to could not proceed,” Mangudya said.

“Further, a stay of execution was lodged with the High Court.”

Mangudya said Allied Bank Limited was a contributory institution with the Deposit Protection Corporation (DPC) and all small depositors would be paid up to a maximum of $500. The remainder of the balance would be settled after the liquidation process.

“The DPC is currently putting in place the necessary logistics to facilitate immediate payment to all small depositors, and the public will be advised accordingly by the DPC in the Press,” he said.

Mangudya said the provisional order pertaining to Allied Bank Limited “will be published in the Press to enable all interested parties to lodge their claims with the provisional liquidator”.

Mangudya said the challenge of troubled banks was being addressed through a number of measures that include the implementation of a comprehensive framework for dealing with problem banks and amendment of the Banking Act to ensure that RBZ is sufficiently empowered to expeditiously deal with troubled banks.

The measures also include a comprehensive collaborative framework with other financial sector regulators such as DPC, Insurance and Pensions Commission and Securities Commission to ensure financial sector stability.

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