The Zimbabwean understands the ministry has issued three “corrective orders” to banks to try make them safe for the public and will continue to carry out risk-based assesments until the industry is “safe and sound”. Finance minister Tendai Biti has told the Parliamentary Portfolio Committee that three banks are “in the intensive care unit” but he refused to say which institutions are in a risky position.
The financial condition and performance of institutions is being strictly monitored through “off-site surveillance” against set prudential standards, a source said. Nigeria’s EcoBank is moving to rescue one of the distressed banks and has already snapped up a 50 percent stake in Premier bank. Last week Biti arranged a US$30million credit line for AgriBank, believed to be one of the institutions in the red.
We have been observing the risk situation and watching those sick banks closely, and one of them is state-connected, Biti said. The Finance ministry’s moves come after several locally owned banks sent the financial sector into turmoil after closure before formation of the unity government two years ago.
Zimbabwe has seen the closure of at least a dozen private banks for alleged fraud and mismanagement. Depositors have been left at a disadvantage as accounts have been locked, and creditors of the banks that were affected by closure are still waiting for confirmation if they will get any part of their money back.
Post published in: News