Business

BoZ still reviewing Intermarket Banking Corporation books

BOZ

NOMSA NKANA, Lusaka
THE Bank of Zambia (BoZ) is still in the process of preparing a financial statement for the Intermarket Banking Corporation, whose outcome will determine the next course of action on the bank.
In response to a press query, BoZ manager communications Besnat Mwanza said the course of action will include the treatment of depositors and other creditors.
The Banking and Financial Services Act (BFSA) provides that the statement of affairs of the assets and liabilities must be prepared within a period of 90 days from the date of possession.
“In this regard, the BoZ is still within this timeframe and, therefore, will only be able to determine the way forward once this report is finalised,” Ms Mwanza said.
Last year, the central bank took possession of Intermarket Banking Corporation Zambia Limited due to the bank’s insolvency and its inability to meet obligations.
Recently, BoZ head of communications Kanguya Mayondi said Intermarket Banking Corporation Zambia Limited conducted its business in breach of any written law and engaged in a course of conduct that was deemed unsafe and unsound.
Mr Mayondi also said the bank’s capital is less than the prescribed requirement.
BoZ is empowered under Section 81 of the BFSA to take possession of a financial service provider where, in its opinion, an inspection of the financial service provider instituted under this Act shows that the bank is insolvent.

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