Time Bank bounces back

Nqobile Bhebhe, Senior Business Reporter

TIME Bank of Zimbabwe Limited, the first locally owned commercial bank to be established in the country, has bounced back after 18 years of being dormant.

The commercial bank was placed under curatorship by the Reserve Bank of Zimbabwe (RBZ) for a period of 18 months in October 2004.

It was subsequently de-registered after the curatorship period ended; a decision the bank’s management successfully challenged in the Administrative Court in 2009. Time Bank successfully contested alleged banking transgressions levelled against it by the central bank.

However, in a statement, the central bank said Time Bank has been authorised to conduct limited banking activities but would not take deposits from the public.

“It is hereby notified that Time Bank Zimbabwe Limited has been authorised to conduct limited banking activities in terms of the Banking Act (Chapter 24:20) following a pre-opening inspection of the institution’s readiness to commence banking activities.

“Having regard to the institution’s risk management structures and processes, level of capitalisation, corporate governance arrangements, its business plan and the Banking Act, Time Bank has been authorised to conduct limited banking activities and shall not be taking deposits from the public,” reads a statement by the central bank.

Time Bank was licensed in 1997 and began operations the same year. At that time there was no commercial bank, which was owned by local Zimbabweans.

However, there were merchant banks and discount houses, which were owned by local Zimbabweans.

According to the Mid-Term Monetary Policy Statement, as of 30 June 2022, the banking sector comprised 13 commercial banks, five building societies, and one savings bank.

In addition, there were 183 credit-only microfinance institutions, eight licensed deposit-taking microfinance institutions and four development financial institutions under the purview of the RBZ.