Bank of Zambia Takes Possession of MyBucks zambia Due to Insolvency
17 Feb 2025. The Bank of Zambia has taken possession of ECSPONENT FINANCIAL SERVICES LIMITED, trading as MyBucks Zambia, pursuant to Section 64 of the Banking and Financial Services Act (BFSA), No. 7 of 2017. This decision was made due to the institution’s insolvency.
The Bank of Zambia’s Board of Directors passed a resolution to take possession of MyBucks on February 16th, 2025, at 16:23 hours. This move aims to safeguard the interests of depositors and other creditors, as well as prevent a disorderly exit of the institution.
During the possession period, the Bank of Zambia will prepare a statement of affairs and take any other necessary actions in line with Section 73 of the BFSA.
The Bank of Zambia’s powers to license, supervise, and regulate financial service providers in Zambia are defined under the Bank of Zambia Act and the Banking and Financial Services Act. The primary objective of the Bank of Zambia is to formulate and implement monetary policy and supervisory policies that ensure the maintenance of price and financial system stability.
In this case, the Bank of Zambia invoked Section 64 of the BFSA, which allows the central bank to take possession of a financial institution in cases of insolvency. This move demonstrates the Bank of Zambia’s commitment to maintaining financial system stability and protecting the interests of depositors and creditors.
The takeover of MyBucks Zambia is a significant development in the country’s financial sector. It highlights the importance of effective regulation and supervision in maintaining financial stability. The Bank of Zambia’s actions aim to prevent a potential crisis and ensure that the institution’s failure does not have a ripple effect on the entire financial system.
As the Bank of Zambia continues to work on resolving the situation, it is essential for depositors and creditors to remain calm and cooperate with the authorities. The central bank’s actions are aimed at protecting their interests and maintaining financial stability in the country.
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