BoZ takes over Intermarket Bank

Wed, 30 Nov 2016 09:23:13 +0000

THE Bank of Zambia (BOZ) has with immediate effect taken possession of Intermarket Banking Corporation Zambia Limited because it is insolvent. The Central Bank has revealed that the bank was no longer able to meet its institutional obligations, head of communications Kanguya Mayondi has announced. Mr Mayondi explained that BOZ under Section 81 of the Banking and Financial Services Act had authority to take possession of any financial service provider where its operations were in breach of the Zambian law. He said that the banking regulator could take possession of a financial institution for any reason if it was unable or likely to become unable to continue with its operations. Mr Mayondi warned that a financial service provider could be taken over if its capital was less than the prescribed minimum and that it was deemed insolvent. He disclosed that BOZ had with immediate effect taken possession of the Intermarket Banking Corporation because it was insolvent and not able to meet its obligations. “BOZ has determined that the Intermarket Banking Corporation Zambia Limited is insolvent and not able to meet its obligations as they fall due. BOZ under section 81 of the BFSA can take possession of a financial service provider where in its operations it is in breach of the Zambian law or for any reason if it’s unable or likely to become unable to continue its operations and less than prescribed capital,” he said. Mr Mayondi assured the nation that the decision to take over the bank was intended to safeguard the interests of depositors and preserve the integrity of the financial system. He advised depositors, creditors and other interested parties to forward their queries to BOZ and that during this period, BOZ shall cause to be prepared a statement of affairs and take any other action it deemed fit.