The Bank of Zambia has announced that it has taken possession of ZAMPOST MicroFinance Limited and Pan African Building Society on account of insolvency.
The action is with effect from today,19th day of July 2019.
The move is pursuant to Section 64(2) (e) of the Banking and Financial Services Act (BFSA), No. 7 of 2017 which empowers the Central Bank to take possession of a financial service provider where such a financial service provider fails to comply with this Act and any rule or regulatory statement issued in accordance with this Act or any other applicable law.
In a statement, the Bank of Zambia says it has determined that Zampost Microfinance Limited and Pan African Building Society are insolvent.
“Therefore, the Bank of Zambia has exercised its authority under the law to safeguard the interests of the public and provide for the orderly exit of the two institutions from the financial sector,” it said.
“Zampost Microfinance Limited and Pan African Building Society are now under the possession of the Bank of Zambia. During this period, the Bank of Zambia shall prepare statements of affairs of the assets and liabilities of the two institutions and take any other action it deems fit.”