Melo News | Tuesday, July 9, 2024 | Lusaka
Following the closure of Investrust Bank three months ago, Zambia Industrial Commercial Bank Limited (ZICB) has stepped in to take over the operations of the financial institution, including its accounts and certain branches. Investrust Bank Plc has now been placed under liquidation as per the Banking and Financial Services Act, 2017 to address remaining issues.
On April 2, 2024, the Bank of Zambia (BoZ) assumed control of Investrust Bank after declaring it insolvent due to stakeholders failing to meet financial obligations. An assessment revealed an insolvency extent of K749.7 million, resulting in a capital deficit of K853.7 million to meet the required minimum capital for a local bank.
In accordance with the Banking and Financial Services (Amendment) Act, 2020, the Bank of Zambia has engaged in a Purchase and Assumption (P&A) Transaction with Zambia Industrial Commercial Bank Limited (ZICB) to facilitate the transition. This move aims to ensure financial system stability, as stated by BoZ assistant director Besnart Mwanza on July 8, 2024.
Mwanza explained that ZICB will take over the deposit liabilities along with corresponding assets, as well as acquire selected additional assets from Investrust Bank. Customers with outstanding deposit balances at Investrust Bank Plc (In Possession) will have their funds transferred to ZICB, allowing them to access their money and banking services seamlessly.
As part of the transition process, ZICB will also assume some of the business locations previously operated by Investrust Bank Plc (In Possession). Starting from July 15, 2024, customers will be able to access their new accounts at ZICB, ensuring continuity of banking services. The Bank of Zambia has urged depositors, directors, shareholders, and creditors to cooperate during this period of change.
