Online Reporter
Martin Kadzere
FBC Bank and FBC Building Society have formally applied to the Ministry of Finance, Economic Development and Investment Promotion for approval to merge.
This transaction will result in the latter ceasing to exist as a separate entity.
The notification, made public in terms of Section 25(4) of the Banking Act, signals a major restructuring within the financial group aimed at consolidating banking and property operations under fewer, more streamlined entities.
FBC Bank and FBC Building Society both fall under FBC Holdings, which also owns Crown Bank, formerly Standard Chartered.
The proposed merger is structured as an asset and liability transfer under a formal restructuring agreement between the two institutions.
All assets and liabilities related to the FBC Building Society’s core banking business will be transferred to FBC Bank.
The building society’s non-banking operations, however, will be separated and transferred to a newly designated entity.
The notice states: “In order to facilitate the merger of the two institutions, FBC Building Society will transfer all its assets (and) liabilities in relation to all its banking business and operations to FBC Bank Limited.”
The completion of this move will result in the definitive closure of the building society. “Subsequent to the merger, FBC Building Society will cease to exist as an entity,” the notice confirms.
To ensure transparency, the draft restructuring agreement is now open for public inspection. Interested parties have 21 days from the date of publication of the notice in the Government Gazette to review the document and lodge any objections or representations.
