The Deposit Protection Corporation (DPC) says over 150 000 account holders of three liquidated banks will get $929 000 under the demonetisation scheme.
BY TATIRA ZWINOIRA
The account holders belong to Allied Bank, AfrAsia and Interfin Bank — the three banks that were liquidated after failing to meet the minimum capital requirements of $25 million.
DPC chief executive officer John Chikura told NewsDay last week that the account holders were eligible to receive compensation provided they submit claims.
“Available records indicate that about 151 114 account holders of the closed Allied Bank, Afrasia and Interfin Bank are eligible for compensation in respect of the Reserve Bank of Zimbabwe (RBZ) demonetisation programme, provided they submit their claims,” Chikura said.
Under the scheme, payments go to depositors for deposit balances up to a maximum of $500. Commencement of payments for the three banks began last year from February 20, March 3 and 30 respectively.
The three financial institutions are part of the six banks that were closed down due to financial distress since the use of the multicurrency regime in 2009. Other banks that were closed are Trust, Capital and Royal.
Chikura said: “Banks play a key role in the development of an economy through financial intermediation hence financial stability is of paramount importance to economic prosperity.”
The banking sector has been hit hard with liquidity constraints, non-performing loans, and high interest rates.
As at May 31, 2015, DPC had put seven contributory institutions on the watch list. Four of them were in a distressed financial condition, that is, had CAMELS ratings of “4” or “5”. CAMELS is a rating system for banks where regulators look at capital adequacy, asset quality, management quality, earnings, liquidity and sensitivity to market risks.