dyton mupawaenda
THE Reserve Bank of Zimbabwe (RBZ) yesterday cancelled the merchant banking licence of non-operational Avis Bank Limited after it failed to start operations after being granted a licence last year.
In a statement, the RBZ said Avis Bank Limited had been granted a merchant banking licence, but had failed to start operations.
Avis Bank Limited was licenced on June 7 last year, but the RBZ said it had failed to put in place requisite systems and structures for banking.
“Having failed to meet licensing conditions, the institution did not have any depositors on its books.
“Accordingly, the Registrar has cancelled the bank’s license in terms of Section 14 (1) (i) of the Banking Act.
Members of the public are accordingly advised not to undertake any banking business with the institution,” the RBZ said.
Over the years, the central bank has cancelled several other bank licences for various offences, resulting in depositors being prejudiced.
But with Avis the cancellation came before there were any depositors so the move is precautionary only. – New Ziana.
Online Reporter