The Bank of Zambia (BoZ) says it will not hesitate to take supervisory action against any player in the banking market that fails or neglects to comply with the prudential standards as set by law.
BoZ Head of Public Relations Kanguya Mayondi said the Bank is empowered by law to intervene in the market if the stability of the financial system is threatened by any one of the players in the market.
Mr Mayondi said this yesterday in a statement made available to ZANIS responding to a lead story published in yesterday’s edition of the Post Newspapers titled “Government Scheme to Grab Finance Bank Exposed” in which the paper alleges that Government through the Bank of Zambia (BoZ) intends to take over Finance Bank Zambia Limited and nationalize it.
He said taking supervisory action against an erring market player regulated by the Bank should not be construed as something strange but as a natural consequence of exercising powers vested in the supervisor.
Mr Mayondi stated that the powers vested in BoZ can be exercised on any bank or financial service provider that has been licensed by it, including Finance Bank Zambia Limited if it is found to be breaching the law.
He said it is not the business of BoZ to nationalize banks, stressing that the Bank has no intention of nationalizing any bank in Zambia.
Mr Mayondi said the Bank’s business is to regulate and supervise banks and other financial service providers as outlined in the Banking and Financial Services act Cap 387 of the laws of Zambia.
He explained that the BoZ regulatory focus is on prudential, investor protection, ant-fraud and consumer protection.
Mr Mayondi further pointed out that promoting competition in the market is one of the cornerstones of Bank regulations under the Banking and Financial Services act.
ZANIS
What Mr Mayondi should have listed down are the laws Finance Bank has breached. Why are they send their officers to all the branches? We know what the mandate of BOZ is, so that’s not the issue. Why is BOZ investigating Finance Bank? That’s the question @ hand
The so called regulating a bank, if done under a political cloud,is what amounts to nationalisation because its not the normal objective regulation but rather a more politicaly driven scheme. Shame on you .
finance bank got all the accounts for ZRA and most govt agencies during the LPM reign. Zanaco has always a custodian of govt monies but late levy gave this business to his friend at finance bank. with the coming of RB we have seen most govt depts going back to Zanaco. maybe thats why finance bank needs supervision
Ha..ha.. Please do not comment if you have idea of an issue. You have just exposed you ignorance.
MAHTANI’s croockedness is what has brought the goings at finance bank under the microscope of BOZ.so there is nothing political
some sympathiser passed on this information to Sir Micheal Chilufya who inturn passed it on to the Post. thats how things work nowadays. the only problem with this article is it doeas not refute the story but just tries to explain between the lines that the action it intends to take should not be miscontrued as nationalisation but merely supervision which its mandated to do. so wither Finance Bank. i hope with this there wont be a marathon on the bank.
Why was Finance Bank at loggerheads with the Govt of Malawi? This bank needs serious supervision right now especially that it enjoyed govt favour or I should say was above law during LPM.
#7 Malawi kicked out finance bank from their country because of dubious dealings-money laundering. It was only in Zambia where they had a safe dancing place. Time has now caught up this them.
What do you expect from gutter journalists at the POST, they can’t even maintain a decent online presence with all that dubiously solicited donor money. A one man temba on the run of the ZWD are doing a better job at it and all their attempt to get them closed totally failed and looks like they are the ones closed online instead.
Anyway back to the issue, BOZ is a professional institution and they know their business and they know what they are doing and some of the best brains in Zambia are found at that institution. It is the responsibility of the Central bank to ensure stability of the any banking system and when they execute their mandate, that should not be construed as secret nationalization scheme.
The US saved CITI and many other banks and nothing wrong there.
So Ba Bootlicker answer my questions, “what has Finance Bank done/breached for it to require supervision?” “What has BOZ seen that has raised concern?”
Boot lick ulichipuba.
Bootlicker – perhaps you should graduate to A$$ licker, you are so disgusting!
It would be better to state specifically which laws Finance Bank has flouted. It would also be better to state specifically what punitive measures are supposed to be taken against Finance Bank. The word “supervisory action” is abstract and ambiguous.
There is no smoke without fire
#9 MMD Chief Bootlicker- Yes the POST is a gutter news paper, you are right. That puts Times of (ZAMBIA?) and Daily Mail in the SEWER. Actually I have discarded all media in Zambia. I use Lusaka Times and the other one because here I have the chance to participate in debating the stories and reports with all types of individuals. Yes all media print and television/radio are just THEIR MASTER’S VOICE.They have all forgeten what they learnt at University as journalists just to keep their miserable jobs.
Our Zambian wikileak is at it again. I think post journalists should do some research before publishing a story.
A central bank can take over a bank or insurance company, this happens throughout the world and it has been happening for years. Recent example are AIG and citygroup in the US, the US government even appoint a government official as CEO of General Motors. In the UK the government took over Northern Rock and the Scottish Royal bank, this is to protect the economy and consumers. Other countries like Japan use such measures. Do you how many innocent Zambians and companies would loose their savings of Finance bank collapsed?
#4 i agree with you, Please do not comment if you have idea of an issue.
What is going to happen to some people’s monies????????
when you hear that a commercial bank is being supervised closely by BOZ it means it has no enough monies. During the penza time they would allow that bank to close like meridien biao. what the post is doing is make depositors panic and withdraw money from the bank hence weaken it further. BOZ wants to prevent thats why it is working silently
# 9 and 14, the Post has become a guter news paper because its not reporting what you want to hear. When it was prosecuting FTJ during the terror reign of LPM who was so full of bitterness and vengence against FTJ, you were praising the Paper. Shame on you and your iching ears which wants to hear what they want to hear. The Post may be subjective but they report facts. Even the Times and the Daily Mail are gutter papers in the views of most Zambians together with ther rubbish ZNBC. They are govt papers. So which paper is more credible.
Hahahaaa..# 5 you have made my day. Ati niwebo ka.
# 15, Finance Bank is not facing problems serious enough to warant take over by BoZ and you can’t compare what happened in America during the recession to the issue of Finance Bank. Be real and sensible
Speculation my A**! BOZ has just taken over Finance bank! Hot off the press!
Very bad for our financial sector stability and sends all the wrong messages to investors.
The reason Mahtani is in court is the same reason BOZ is taking over Finance bank. Simple.
what goes round comes around
to every action there is an equal and oposite reaction
#1, naimwe ba Katubi, do you honestly expect professional institutions like BoZ to share their investigations with you? What would you do with it anyway, spread the news in the Katubi dens?
These things are done quietly until you establish the truth lest they damage the name of the bank if it is found to be innocent. Bushe imwe ba PF, you think that all institutions should stop operating just because ba shikulu ba Sata balefwaisha plot 1 atini? Zambia will live on, well at least until PF takes over and wipes it off the map of Africa.
#18, of course the Times, Daily and ZNBC are more credible. At least we know that they are owned by government and we can make appropriate judgements about their content. However, they give us national development news which the Post would not like us to see. With the Post we cannot tell when they are driving their personal agendas or when they are reporting the truth or twisting it, so it is safe to conclude that they are more dangerous to our well being in their current state. And they have openly stated that they are in it for the sales and the money………they report and I quote them “on leaders who sell our paper”
NCC, to you daily mail and times of Zambia are credible, i think this is because they support the old f.o.ol at plot one whom you also lick for survival. let me give you one example, maybe it will help u, though i dont think it will cos ppl like you are bent on doing and hearing only that which they want, however stupid or foolish it may be. how many opinions were written by these papers against Chiluba during LPM’s time? and today the same papers are singing praises for him. the only reason the BoZ wants to nationalize this bank is that Rupiah believe MAHTAN is funding the opposition. so stop hallucinating pig. lady gaga you are a fool! thats all i can say to you!
Mathani now facing the viciousness of Kafupi FTJ and RB. There is now no running away from the vengence of FTJ for not giving him his prper cut from the Carrington Maize deal!!
We lost our best national team( tears will never dry) we lost a president that seemed to care for the masses. Haiti maybe a troubled nation but we are moving in that direction and none seems to care. Zambia needs to be saved. I pray that God can bring a very big desease on Chiluba. Chiluba will distroy this country as long as he is alive…
NCC BoZ is not professional. People like you who think a reserve bank in a country where 80% of it population lives on less than a dollar a day only show how deep or shallow their minds are. Go to botswana and see how professional the reserve bank is. You don’t get kaponyas on katondo street dealing in foreghn currency. People dont quote prices in US Dollars. Even in South Africa Financial intelligency is a responsibility of the reserve bank. What professionalism do you attribute to the reserve bank when our currency is one of the weakest in the region?
Lady Gaga must stop commenting on this blog she or he is too dull find a forum where your ideas will be appreciated. It is believed Mahatan has been sposoring PF. End of story RB will do anything to prevent Sata from becoming president next year. I see blood during the run to next years election. I pray for my family I wish I could bring them all out of that God forsaken country
Death, why do you take the good people and leave the useless ones to destroy the country? Oh, you are death after all, not meant for good. Does it mean these crooks will live on much longer? Yaba!!!
only a stupid person can say that mahatan is sponsoring Ba Shikulu Ba Sata (Pa Bwato) we know what Plot one is up to, the taking over of Finance Bank by BOZ is about $100,000 which Ba Shikulu desposited through the Finance Bank………….. Ba Swine Poseniko Amano …………Pabwato……. Next year we go……..
what also contribute to financial instability is speculations. BoZ are experts in this field so they must be doing something right. They have told us why they are doing this, which is good. however to minimize speculations since people see politics in everything the BoZ should openly tell the public what wrong was done by F. bank. that will be fair for the depositors and creditors of the bank. anyway **** the creditors, i am worried about the depositors.
number 33 u r touch
i meant tough