Time Bank to re-open 

Source: Time Bank to re-open – DailyNews Live

BUSINESS WRITER      22 December 2017

HARARE – Time Bank of Zimbabwe Limited (Time Bank) has been given a
licence to resume operations by the Reserve Bank of Zimbabwe (RBZ).

RBZ yesterday said the bank, which was closed in 2006 for alleged
mismanagement of funds and has been engaged in discussion with the central
bank, would soon open its doors to the public.

“Following discussions between the Reserve Bank of Zimbabwe and Time Bank
to address the issues, a resolution has been reached, paving way for
re-opening of the bank,” the central bank’s registrar of banking
institutions said yesterday in a statement.

“Time Bank shall be resuming banking operations subject to prior
inspections by the RBZ to ensure that Time Bank has put in place the
necessary capital and banking systems and structures,” the RBZ added.

Time Bank, which was placed under curatorship in 2004 and 2006 by the RBZ
but had its licence reinstated in 2009 after the Administrative Court
ruled that its closure was illegal, was recently handed over its $4
million computer system – paving way for the commercial bank to open its
doors.

While the bank’s owners have always maintained that Time Bank’s placement
under curatorship was unfair in that the then central bank leadership did
not want to settle its debt to the institution, RBZ governor John Mangudya
has taken a conciliatory path with many bankers.

Mangudya told Parliament early 2015 that he was making inroads to break an
impasse in the Time Bank saga.

Market experts say the placing of Time Bank under curatorship more than a
decade was suspicious as the RBZ and the bank’s curator did not reveal the
multi-million dollar debt.

“The principal amount was more than $5 million. If the right to be heard
had been granted the information about such unpaid debt should have been
taken into account before closure of the bank or before its licence was
cancelled,” said a financial expert who preferred anonymity.

Despite not being paid its money by the central bank, Time Bank – under
its directors – fully paid all its depositors, including interest.

“In the history of Zimbabwe it is the only bank that paid all its
depositors without taking in new deposits and without being paid its money
by RBZ. This shows that Time Bank was in sound condition and did not
deserve to be closed,” sources said.

“The RBZ treated Time Bank unfairly by closing it in 2004 before the
central bank paid it its money,” the sources added.

COMMENTS

WORDPRESS: 1
  • comment-avatar

    Time Bank has a strong civil case here. lawyers come on board.