The Bank of Zambia has taken possession of Intermarket Banking corporation Zambia limited with immediate effect.This is according to to a press statement released o the media by Bank of Zambia Head of communications.
Intermarket Banking Corporation has become the first victim of the Bank of Zambia stringent capital adequacy requirement which has forced the bank to become insolvent.
The development has now forced the Central Bank to announce its takeover of Intermarket Banking Corporation.
In 2012, the PF Government raised the minimum capital requirement for both local and foreign commercial banks to K104 million from K12 million and K520 million, respectively.
But most banks especially foreign owned ones operating in Zambia have been struggling to meet the minimum capital requirement forcing some to alter their shareholding structures by incorporating local shareholders.
This has still not helped increase their liquidity status with some barely surviving.
Insiders have revealed that the Bank of Zambia senior management is meeting to consider the fate of two more banks whose balance sheet has deteriorated over the last few months.
According to a statement, the Bank of Zambia has determined that Intermarket Banking Corporation is insolvent and is not in a possession to meet its obligations as they fall due.
“The Bank of Zambia wishes to remind the general public that the decision to take over the affairs of Intermarket Banking Corporation, is intended to safeguard the interest of depositors and preserve the integrity of the financial sector,” the statement read.
The Central Bank announced that during this period of possession, the Bank of Zambia shall prepare a state of affairs and take any other action it deems fit.
Intermarket Banking Corporation was in March 2010 acquired by Afriland First Bank Group of Cameroun who took over 80 percent shareholding in the bank for an undisclosed sum of money.
Afriland also took 80% shareholding in Intermarket Securities, which is 100% owned by Intermarket Bank.Sabre Capital, the former majority shareholders in Intermarket Bank retained 20% ownership.
With Headquarters in Lusaka, the bank had seven branches across the country.
?
Yaba, if the PF is failing to pay its workers and it retirees on time, what hope is there that this bank’s customers will get their money?
I suspect this bank fell victim to PF because it failed to raise US dollar loan for PF. Just my speculation, but 99% of my speculations regarding PF have actually come to pass.
All the are signs of a failed state which has squeezed most of the cash local banks and there by making borrowing extremely expensive to individuals and businesses by forcing the banks to raise the interest rates through the roof.
Chagwa amd his PF stooges must go.
Zambians should learn from South Africa and do a Zuma on Lungu
Its not first victim of BOZ minimum capital requirement but of a failling economy
desperate pf in action.no reserves at BOZ…
the banking system is simple. customers bring in deposits–the bank uses those deposits according to their interest as prescribed in the BFSA– Banks main assets especially in Zambia are loans–individuals or company’s get these loans with a promise to pay back. The bank also promises the depositors to owner their obligation as they fall. Banks need to maintain a certain level of liquidity in order to meet these customer obligations. If they fail to for fill customer obligations, banks strategies to increase deposits form customers, if that doesn’t work a bank can borrow from another bank, if that fails the central bank act as a lender of last resort to lend to the bank. If still more things don’t become normal (as problems with liquidity levels) the bank becomes insolvent(it not able…
well explained. Meridian Bank made destitutes of many people. This should not happen again.
Simply explained, yes.
But; honour (owner), fulfill (for fill), banks’ strategy is to (banks strategies to), from (form), acts (act), (just avoid ‘still more’)!
Splitting hairs? Yes, I love it, especially if there is plenty of hairs to split..!!!
This crisis is caused by PF. At 2012 exchange rates, foreign owned banks required $100m capital while local banks required $25m. This was arbitrary and not based on any logic. Now the birds are coming home to roost. Liquidity is also affected by the very high reserve ratio that is stipulated by BoZ. PF has ducked liquidity out of banks and they expect customer deposits to cushion that? Even the stolen Eurobonds are not kept in Zambia. How can liquidity be maintained? At least 3 banks will close and already 3 non-banking financial institutions have closed. All these former employees thrown onto the streets were breadwinners of their families. There’s nothing good that will ever come out of PF.
Meant… sucked liquidity out of….
Absolutely correct. But due to high levels of illiteracy, few will grasp this.
BOZ passed govt’s fiscal indiscipline onto banks. By raising this capital requirement, BOZ is collecting vast amounts of cash to government to spend recklessly on corrupt 1m usd per km roads with no hope of paying back. This is truly a failing economy!
More people joining the ever swelling army of unemployed. This is what PF calls more money in your pockets.
BOZ is clearly not the regulator it should be. Why allow the bank to operate until things come to this? Isn’t their role to oversee that liquidity is certain with these banks? What will happen to people who have saved at Intermarket? GRZ is broke but please, spare a thought for the common man on the street who might have had ka ngwee ka retirement in the bank.
What has govt got to do with this?This bank has been on the brink for a a long time now.What have the managers been doing?why aren’t the other banks following suite ?Intermarket bank has simply failed to compete with other banks.In these times,innovation is key…managemet has to become innovative and come up with attractive products to attract more customers/investors.it’s a dog eat dog world.Govt wont bring food on your table,you have to sweat for it.
vm, good observation and contribution.
The Rwandese are making money in the same shanty compunds where the majority zambians are roaming in abject poverty and you want to blame a politician…mxxxm.It’s all about our attitude towards business and work that has left us at the bottom of almost every imaginable list.Even HH would have a tough time turning things around,We are simply lazy and useless.We only like drinking beer (those that dont drink enjoy rumor mongering and reckless spending),having lots of sex and waiting for salaries(complaining and insulting when they are delayed for 2milliseconds)…and ofcourse arguing on social media over things we can’t change.ATTITUDE is KEY to a BETTER ZAMBIA…not ECL,HH,GBM,NEVERS etc.they all have the same goal..get into plot 1 and make more MULLA,dont be cheated colleagues ->…
Spot on Song, more Zambians being thrown out of employment. Very Sad indeed. PF gvt under Lungu is a failed state
I rest my case. Thank you
Am effected its not strong one can die pray for me
Am also affected. This is shocking.
what shocking,any game has rules if that particular ban has no capacity or a prescribed capital why let letting it to work,no BOZ has to come in.NO POLITICS INVOLVED
I hope this won’t lead to the loss of money or swindling. hope the customers wealth is safe….
Blockchain Technology will drive many banks into closure! Watch the space.
“Sigh”
this is done by central banks all over the world, take over small bank in the night or on a friday and reopen it under a different name the following week!
Ever heard of a term called ” too big to fall “? if this bank was too big to disrupt economic activities, they would have BAILED it out! But now that its a small bank, they just take-over the bank.
Otherwise such things start happening when the economy is headed for a crisis!! Watch this space and dont forget the the early 90’s of the zambian economy!!!!!
Shame to boz . They should use profession
al . Know the all small banks 2mwr they be traffic closing account
Let the BOZ take care of customers money. People should be paid their money. The loosing stake holder should be the intermarket bank, not clients.
BOZ should make sure the clients get theirs. Client should never be affected coz they have just banking the money with the bank as a well of safeguarding their income. Loosing of inter market stakeholder should not affect wat inter market is just keeping on my behalf.
If client are not paid in good time, the poverty levels will go high.
I guess boma ilanganepo, 2021 is not far.
Hope this is not just a trick so that they reopen the bank under anew name after few weeks. Coz I was told that the bank had new stakeholders who had plans of improving the services by December 2016
Give the clients back their emoney, lose niya inter market and not its customers. Even day notice would have been given to its clients
Nd I worked day and night for 5years…starving my self just to raise money for school and was happy that now my dreams will come true but only this to happen oh God this has really shattered me
Learned capitalists out there, which bank is safe then? Because this send a chill down my spine: two more banks are being lined up for possession? Problem ma international banks kuba daily, you’re charged for breathing in their branches.
someone tell me if we shall get our money.
Sometimes it’s better to use logic than emotions. Would you like to wake up one only to find your bank has disappeared ” or for government to ensure you get your money before this bank “disappears “? This nonsense of politicizing every issue is only found among savages.
Boz work professional and give the clients their funds they suffered for…Basavutikilemo
I’m one of the client of this bank and I’m a businessman.I’m so devastated right now.and I don’t know what to do now.
I was suppose to have travelled the very day the bank was closed.
What is more saddening is that the management hasn’t come out to give us an update .as their clients on what next.
My ordered items are now stuck in S.A
Please help us please ……
Ine njipusheko, if this bank was my broker for some shares I have in another firm, what effect has it got on me? Can I simply move to another broking firm without loosing anything?
The demise of Intermarket is rather unfortunate. BOZ nor the government cannot be blamed for this. Banks have an obligation of maintaining operational efficiency, and the bank failed to honor that obligation. Look around the World and see how many economies are struggling – the US itself has a fiscal deficit of USD 19trillion. Venezuela, Brazil, Greece, Italy etc. Even the Bank of Germany fell short of its monetary policy obligations and is now facing a fine of more than USD 7trillion. Governments world over raise interest rates as a form of fiscal stimulus. How quick we are to forget that in the MMD regime some ministers where burying in the ground billions of Kwacha. Every small thing, we blame a government that probably inherited the damage that the previous government had already done…