Time Bank pays depositors

HARARE - Time Bank has paid in full its financial obligations to former depositors of the closed bank and announced that it will now concentrate on the legal suit to reclaim its banking licence cancelled by the Reserve Bank of Zimbabwe last year.
According to correspondence made available, the b

ank paid in full all depositors who responded to its adverts for reimbursements by December 29 last year.
Depositors’ funds that were not claimed have since been remitted to the office of the Master of High Court, where those yet to receive their money could recover it.
It was however not immediately clear how much in total was paid to the former depositors serve to say that a 100% settlement rate had been achieved.
The Registrar of Banking Institutions last year cancelled the banking licence of Time Bank arguing the closed bank was insolvent. Time Bank denies the claim.
The Registrar of Banks said investigations had revealed that the bank’s assets together with the remaining funds were no longer enough to safeguard the interests of depositors and withdrew the licence citing provisions of the Banking Act.
Time Bank contested the cancellation, announced on July 31 last year, arguing that the central bank did not have the true financial position of the bank immediately after July 31 adding that the bank was still viable. The matter is currently before the High Court.
After cancelling Time Bank’s licence the Registrar of Banking Institutions and the RBZ directed that Time Bank should stop using the clamp bank in its title, as it was no longer a bank, but only a company as per the Companies Act.
Time Bank has appealed against this directive at the Ministry of Finance, which is yet to make a determination.
Time Bank’s problems started in 2004 when it experienced liquidity problems that affected the whole banking industry and claimed the scalps of some institutions. – Business reporter

Post published in: Economy

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