Two Banks Close Down
Zimbabwe’s banking industry was plunged into a mini-crisis last night following the closure of two banks.
Genesis Investment Bank handed in its banking license while Interfin was placed under curatorship. Both banks had been suffering from serious liquidity crisis.
Genesis threw in the towel after failing to get suitors to commit to helping them raise the minimum capital requited by the Reserve Bank.
Peter Bailey of KPMG will take over the curatorship of Interfin for 6 months.
Interfin has been the worse of the two, being unable to fund demands of its customers. For example it has less than $4,000 in its RTGS account in spite of huge deposits made.
For the average person, the question becomes where has the money gone. Given the fact that ZIMRA, Ministries and individuals have made deposits, where is the money? As someone put it, do we have a case of someone ‘loaning’ friends and relatives a la Timba?
What are the chances of someone getting arrested and thrown into jail? We think, very very very slim.
This will not do any good for a banking industry which very few people have any confidence in, especially the indigenous banks.