The Reserve Bank of Zimbabwe is reconsidering its position towards the closure of Time Bank Limited , in a move that is set to allow the bank to resume operations.
After having closed the financial institution 11 years ago over banking malpractices amongst them, under capitalization, of minus ZW $174 billion, the reserve bank issued a statement that they are reviewing their position if the Bank can prove that it has now met the conditions.
“Time bank shall be resuming banking operations prior subject to prioir inspections by he reserve bank Of Zimbabwe to ensure that time bank has put in place the necessary capital and banking systems structure.’, read part of the statement
In 2004, the then Justice Minister Patrick Chinamasa earlier this month lifted specification of the Time Bank’s directors and six companies linked to the bank, a move that many interpreted as a come back for the locally-owned commercial bank to resume operations.
However the same week the RBZ posted a statement that read:
“Take notice that the Registrar of Banking Institutions has cancelled the registration of Time Bank of Zimbabwe Limited in terms of section 14 (1) (j) and (k) of the Banking Act (Chapter 24:20).” Time Bank was placed under curatorship following a probe by the RBZ, which showed the commercial bank’s balance sheet had a negative equity of Z$174 billion.
The powers that be at Time banks are believed to have now put theirhousee in order, and ready to operate, hence the RBZ’ statement to the public.
The Reserve bank of Zimbabwe and Time bank have had historical clashes which have been subject to various litigation, during this period, Time bank went through under curatorship before it was completely stopped to operate In Zimbabwe.
The move will likely bring hope to the Instituion if Time Bank proves that they have met the minimum requirements to operate again as a safer financial player in Zimbabwe.
The new Political dispensation gave time bank another chance to prove their worth, as the new President drives ease of doing business in the nation, to they lure more investors .
here is the full statement by the RBZ.
TIME BANK OF ZIMBABWE LIMITED
1 Members of the public are advised that the Reserve Bank of Zimbabwe and Time Bank of Zimbabwe Limited have had historical disputes, which have been the subject of various litigation. During this period, Time Bank has not been operating as banking institution.
2 Following discussions between the Reserve Bank of Zimbabwe and Time Bank to address the issues, resolution has been reached, paving way for re-opening of the bank.
3 Time Bank shall be resuming banking operations subject to prior inspections by the Reserve Bank of Zimbabwe to ensure that Time Bank has put in place the necessary capital and banking systems and structures.
Registrar of Banking Operations
Reserve Bank of Zimbabwe