THE Bank of Zambia has taken over possession of Development Bank of Zambia and Betternow Finance Company Limited.
In a statement issued, Bank of Zambia Assistant Director Communications, Besnat Mwanza said the possession of Development Bank of Zambia is due to non-compliance with the Banking and Financial Services (Capital Adequacy) Regulations.
Ms Mwanza said the Bank of Zambia has determined that Development Bank of Zambia is under capitalized.
“Further, despite consistent engagements by the Bank of Zambia, the shareholders and the Board of Directors of Development Bank of Zambia have been unable to resolve the regulatory capitat deficiency of the institution.
For this reason, the Bank of Zambia has exercised its authority under the law in order to safeguard the interests of the public and protect the integrity of the financial system,” she said.
Ms Mwanza said during the period of possession, the Bank of Zambia shall cause to be prepared a statement of affairs of the assets and liabilities of the institution and take any other action it deems fit in accordance with the provisions of the Banking and Financial Services Act, 2017,
Meanwhille, Ms Mwanza said the Bank has also taken possession of Betternow Finance Company Limited due to its insolvency.
She said despite consistent engagements by the Bank of Zambia, the Board of Directors of Betternow Finance Company Limited has been unable to resolve the deteriorating financial performance and condition of the institution.
“For this reason, the Bank of Zambia has exercised its authority under the law to safeguard the interests of the public and provide for its orderly resolution.Betternow Finance Company Limited is now under the possession of the Bank of Zambia.
During the period of possession, the Bank of Zambia shall cause to be prepared a statement of affairs of the assets and liabilities of the institution and take any other action it deems fit in accordance with the provisions of the Banking and Financial Services Act, 2017,” she said.
(Mwebantu, Saturday, 22nd July, 2023)