Zimbabwe: Genesis Investment Bank shuts down

TROUBLED Genesis Investment Bank in Zimbabwe, on Monday voluntarily surrendered its banking license to the Reserve Bank of Zimbabwe after its directors failed to find potential partners from 20 investors.

Since 2009, the bank has been courting 20 local and international investors to assist to meet the required capital bases.

However, that was in vain.

RBZ Governor Gideon Gono in a statement said: “Board of Directors of Genesis Investment Bank met and resolved to voluntarily surrender the institution’s banking licence in line with Section 14 (4) of the Banking Act [Chapter 24:20].

“This follows failure by the institution to raise the requisite minimum capital from over 20 different potential inventors whom the bank tried to engage since 2009.”

“The bank’s Board of Directors has failed to steer the institution out of numerous deficiencies including gross under capitalization [$3,2 million]; persistent losses; poor asset quality; paltry deposit base; and chronic liquidity challenges.

“As such, there is no prudential basis for the continued existence of the bank.

“Accordingly, the Reserve Bank of Zimbabwe has closed Genesis Investment Bank and commenced proceedings for the liquidation of the institution,” said Gono.

The closure of the locally owned banks comes at a time when Youth, Indigenisation and Economic Empowerment minister, Saviour Kasukuwere, stepped up efforts to force foreign banks to cede the majority of their shares to locals.

Since 2009, the bank has been courting 20 local and international investors to assist to meet the required capital bases.

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