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Thursday, 1 December 2016

BoZ dispels rumours that more banks are facing imminent closure

The Bank of Zambia (BoZ) has strongly cautioned members of the public and online media to desist from falsely speculating that certain banks or financial institutions are facing imminent closure following the Central Bank’s takeover of Intermarket Banking Corporation.
BoZ Deputy Governor-Operations and who is also the Registrar of Banks and Financial Institutions, Dr. Bwalya Ng’andu said members of the public and online media should stop fuelling speculations as the financial sector was fragile and very sensitive to information. 

He said recent speculations had the potential to cause alarm, panic, harm and had the potential to bring instability to the financial sector. 

Dr. Ng’andu said the decision by the Central Bank to take possession of Intermarket Banking Corporation on 29th November 2016 was procedural and designed to secure the interest of depositors. 

He also stated that during the possession period, the Central Bank would assess the assets and liabilities of Intermarket Bank and a status statement would be made public. 

He said it is this statement that would determine the next course of action as provided by the Banking and Financial Act.

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