Is it that ZCCM-IH or BOZ could not bail out Investrust Bank ?
One of roles of the central bank ( BOZ) is to act as lender of last resort ( meaning lending money to a commercial bank such as Investrust Bank ).
Second option of funding is getting finance from the financial markets by offloading part of the Investrust bank shares.
71.4% of shares in Investrust Bank are held by ZCCM-IH. It is expected that the majority shareholder would inject money in the bank or offload part of its shares to those willing to inject cash. The remaining shareholders are Meanwood Venture Capital ( 17.5%) and others (11%).
Is it because Investrust bank was no longer profitable ?
Is it because Investrust bank paid out loans to individuals and firms that could not pay back in good time ?
Or BOZ had already extended loans to Investrust Bank on numerous occassions at a discount rate?
Why was ZCCM-IH not willing to engage the minority shareholders on resolving the matter with the regulator (BOZ) ?
It will therefore be necessary for more details to be provided to the public on why Investrust Bank had become insolvent despite these two options of funding.
Christopher Kang’ombe
Kamfinsa MP
02.04.2024
How did Zccm-ih end up saddled with this loss making bank?
Such kind of reasoning! How does BOZ come in when it had engaged shareholders to recapitalise the bank but failed to do so. There’s nothing special about investrust bank. For kangombes information, GRZ failed to recapitalise DBZ and BOZ had to exercise it’s legal mandate to repossess the institution .
Banks in Zambia are in Trouble.. It’s not just Investrust.. Very few people are saving, and most banks are becoming just pay points for civil servants.. Then we have mobile money service providers which are slowly taking over most Banking operations..They now have mobile money saving platforms and Loan Schemes. And individual mobile bank deposits can reach K250,000. Then we also have the ‘ micro’ Lending institutions which are also eating into the banking portfolio. Zambia is a small economy and there are just too many players in the Financial sector. If no interventions are done to support the banking sector , many of the banks will die just like the once vibrant Post Office.
Stupid analysis, his aim is to involve government. Banks are independent of government functionary. It up to share holders to keep the concern afloat. Your problem is that ZCCM-IH to you has in exhaustible money. You should stop this finger pointing and comments that are null and void. Useless article.