By Derrick Silimina
The Bank of Zambia has taken possession of Investrust Bank Plc with effect from April 2, 2024 and the move has been necessitated by its insolvency.
In a statement, the Central Bank stated that it has had numerous engagements with the shareholders to recapitalise the bank but unfortunately, the shareholders have been unable to resolve the insolvency.
“Notice is hereby given that pursuant to Section 64 of the Banking and Financial Services Act No. 7 of 2017 (BFSA), the Bank of Zambia has taken possession of Investrust Bank Plc with effect from April 2, 2024. The possession of the bank has been necessitated by its insolvency,” BoZ Assistant Director – Communications Bessy Mwanza said.
Mwanza said under the circumstances, the BoZ had to exercise its authority under the law to safeguard financial stability and the interests of the public adding that the Central bank is also working with key stakeholders, including the Government, on mechanisms for depositors not to lose any of their money.
She has since urged depositors to remain calm as implementation of the resolution mechanisms are being worked upon.
“An announcement to this effect will be made as soon as the arrangements are finalized. During the possession period, the Bank of Zambia shall, in accordance with the law, prepare a statement of affairs of the bank and take any other action deemed necessary. The purpose of the statement of affairs is to establish the full extent of the insolvency of the bank and serve as a basis for the full resolution of the matter.”
