Investrust Bank Plc has reassured its customers and the public, that its operations remain robust and intact.
There are fears that a number of banks in Zambia are under stress following tight monetary policies implemented by the Bank of Zambia and the decision by the Central Bank has raise the minimum capital requirement.
The fears have been compounded by the decision to take over possession of Intermarket Banking Corporation by the Bank of Zambia after it became involvement.
Many customers are now making panic withdrawals and closing their accounts as fears of contagion have spread across the banking sector.
Giving a business update on recent developments in the banking sector and how that relates to the Bank, Investrust Bank Plc said the action taken by the Bank of Zambia is exceptional and specific to Intermarket Banking Corporation Limited.
“The Bank of Zambia took possession of Intermarket Banking Corporation Limited pursuant to section 82 of the Banking & Financial Services Act (BFSA), Chapter 387 of the Laws of Zambia and a statement to that effect was issued by the Central Bank. In addition, the Bankers Association of Zambia has given its position in relation to this matter on behalf of the banking industry.”
“In view of the aforementioned, we would like to take this opportunity to reassure our esteemed customers and the public, that our operations remain robust and intact,” a statement from Investrust Bank Plc read.
It said its twenty-seven branches and three agencies across the country will continue to provide products and services without interruption.
“Further, note that Investrust Bank Plc is the only wholly Zambian owned bank listed on the Lusaka Securities Exchange (LuSE) with a shareholding totalling 600 as at 30th September 2016. Our shareholders include pension funds, private and public corporations and individuals. ZCCM IH is currently the lead shareholder with 48% shares,” it added.
The bank also announced that its shareholders’ dedication to the institution is evidenced by the K40 million raised this year through a Rights Issue.
“The Bank is currently at an advanced stage to raise a further K100 million of equity anticipated to close before year-end. Management and Staff remain committed to serving customers, in the immediate and long term.”
Very flowery language!!
They were robust that time when they were busy flooding their staff carpark with Jeeps, Ford Rangers and Hiluxes. Their tu ma staff were prancing around in tight clothes and showing off in clubs.
I withdrew my K42,500 last Thursday from Mulungushi Branch. Mxxm
Thanks
How uninspiring.
Why people don’t back with reputable Tested, Tasted and Trusted banks only is beyond me.
That’s right use the three t’s test I have given you and if any bank fails them. Don’t bother darling.
Thanks
BB2014
By their own admission above, they have not managed to raise the K125m capital that BoZa stipulates. They are still short by K100m that they are trying to raise. I don’t think BoZa can be selective in closing banks because some are 100% Zambian. If capital adequacy has not been reached, then it’s lights out. There is a smell of death around this bank!
Since Robinson Zulu grabbed the bank from FN this bank has been going down hill.
Watch this space this bank is closing down soon.
“The fears have been compounded by the decision to take over possession of Intermarket Banking Corporation by the Bank of Zambia after it became ?involvement?.”
Nichizungu ichi! From which era King George IV or Queen victoria version!
‘Involvement or Insolvent’ ba eagle reporter. No writing counter-checking.
I understand these are the effects of trying to beat off travel time limits in order to catch the last bus if reporter is reporting out of town.
Coming to the failing banks story, please add Cavmont bank that has been reported to have made losses in the past year. I just withdrew all my savings last week.
ZCCM IH, pension funds, private and public corporations are no guarantee that a bank can perform well. ZCCM mines collapsed even when the owner was GRZ. So who owns…
So who owns ZCCM IH and most pension funds? Is not not the same GRZ which failed to run ZCCM mines?
Don’t delay to withdraw yo money! Banks will only open up to you after closure!
This is another Meridien BIAO scandal about to unfold!
Reasonableness of the opposites attract attention to the ~admission~by invest trust into the~dununa reversed regrets of poor economy. Its expected that the customers can withdraw their non profitable money under PF’s melted economy.
With PF in power, everything is opposites, so invest trust should not be used as an escape goat for political expedience by the failed PF of blind Lungu.
Bye bye Invest ~un~Trusted!
The Skeleton Key
~206~
Otherwise the K100 million short fall asleep again, is just for fattening PF bandits.
The PF illegal MPs found guilty by the Con~Court should pay back the monies they fraudulently accrued, & if there was chastity belt in PF the money can be channeled to cushion the failings banks but it dununa reverse of regrettable poverty economy. Invest Untrusted its shalom!
The Skeleton Key
~206~
Thats how ‘robust’ Meridian BIAO Bank was before the ‘bubble burst’
As Zambians we should learn to support Zambian companies if we are to develop.No country was developed by foreign investors alone.Regulators such as BOZ,ZRA and otherd should also be more nurturing of Zambian companies and not be overzealous to close them. There is so much jealous and excitement by some when a Zambian company closes!Havent learnt how foreign companies like mines want to retrench and run away at slightest whim of difficulty?Let us be patriotic.
ZRA is Regulator?
@Good Governance Patriot,
I beg to differ, Zambian banks should not expect support from their customers even when their services to customers are below standard and segregative. Ask yourself why a customer could decide to close their account if the services are satisfactory?
Don’t forget this, at the end of the day the survival of any business is influenced and decided by the ordinary customer not the board.
If I switch banks you call it being unpatriotic, come on, be serious, stick on with your version of patriotism and continue being exploited.
Today iam withrawing all my cash. Withdrawal syndrome yabwela
show us the liquidity ratios, we shall make our own conclusion.
While no individual depositor is going to put their funds at risk and many will seriously consider withdrawing their funds from banks like Investrust, it will be a real pity if it goes under. We should promote and support indigenous businesses that add value. Investrust is providing much needed financial services and employment. If there is no justification for people to be weary of it I hope it survives these current rough times.
@ blabla:
You actually lack common sense! If your money is frozen in the Intermarket bank and cant buy fertilisers, would you call that patriotic? Thieves like Kambwili and Lungu will be the winners and common people will be the victims of these banks set up by Zambian fraudsters!!
Please Zambians, withdraw your money and put it safer banks before you lose everything!!
It’s not the customer to support and protect a bank. This the Bank ‘s responsibility. If management award themselves astronomical incentives and forget where the money is coming from, the bank will go under. That’s where the government comes in to protect me the customer.
people in zambia dont want to read. these banks post their financials in the newspapers qauterly and semi annually. those who care read already that Intermarket was underperformning and acted 3-6 months ago. when these institutions post their reports in the paper, lets take interest and read, ask experts where you donot understand. insolvency is a process and has stages, its just doest happen unless there is war or acts of god…
Only a foool can believe a bank..remembr Meridian Bank!!
THE CAUSE OF THIS BANK’S PROBLEMS IS POST NEWSPAPERS (IN LIQUDATION) AND POLITICIANS WHO OWE IT COLOSAL SUMS OF MONEY AND HAVE DEFAULTED. THE POST HAS A DEBT OF $2000,000 HOLED UP IN THE BANK AND MEMBE HAS NO CAPACITY TO PAY…. CHECK THE ARTICLES OF THE TIMES OF ZAMBIA IN THE LAST MONTH OF NOVEMBER
Even Barclays a foreign bank has been selling off its entities recently. Therefore if there are liquidity concerns especially in our economy, as customers we should withdraw our monies and find more appropriate banks. Unless you are stating that as a Zambian bank should they fold, we reimburse customer deposits under Boz rules. I highly doubt that…
@10 Maya PLEASE DONT COMPARE BARCLAY’S AND THESE SMALL BANKS. BARCLAY’S HAS A MUCH LARGER BACKING AND SHOULD THERE OBLIGATIONS BECOME DUE THEY HAVE INTERNATIONAL RESERVES TO FALL BACK ON. THOSE OF YOU WITH MONEY IN THESE TU NTEMBA BANKS BE CAREFUL. THINK OF YOUR FAMILY FIRST.
Sounds a little desperate to me. Watch them losely they re next.
@Climax Chewe Halyioba, you are absolutely right! Our reading culture is poor as a country. The writing was on the wall for intermarket and the same is for Investrust Bank. Don’t say you were not warned. This bank has never made a profit nor paid a dividend in ten years! A company posting losses year in year out is definetly depleting its equity! What will remain on their balance sheet will only be your deposits and their loan portfolio! Numbers don’t lie Ba Investrust!
Not all people are conversant with financial language. Those numbers mean nothing to an average reader
It’s the duty of the financial reporters, experts and even bank of Zambia “BOZA” to caution depositors when particular Banks financial statements don’t make much sense.
It is hard to stop a run on the bank once it starts. It is like a gnu stampede – it is unrelenting. Sorry bank!!
This Bank was stolen from Friday Njobvu.
PAN AFRICAN BUILDING SOCIETY (PABS) is closing next. They cannot act on cash transfers to other banks and are blocking cards for customers with large deposits. Most of the top management been forced to resign!!!
THERE IS THE THREE MILLION DOLLARS LEARNT TO MMEMBE AND HIS POST WHICH HAS GONE UP IN SMOKE. THERE IS THE LION DOLLARS LEARNT TO JCN HOLDINGS WHICH HAS GONE DOWN THE DRAIN. THIS BANK REALLY GAMBLED BIG TIME. ITS JUST A MATTER OF MONTHS, IT WILL BURST LIKE INTERMARKET
BANK. WE SHOULD NOT BE DECEIVED.