via Royal Bank land to go under the hammer – DailyNews Live 19 January 2015
HARARE – Collapsed Royal Bank of Zimbabwe (Royal Bank) is set to lose significant land next week Friday, in a Deposit Protection Corporation (DPC) sanctioned auction, following the bank’s liquidation in 2013.
The land to be auctioned includes 23 residential properties, two vacant stands and nine commercial properties.
Hammer and Tongues Real Estate will conduct the auction in the capital.
“Duly instructed by the Depositor Protection Corporation, liquidators of Royal Bank Zimbabwe Limited, we shall sell the following properties by auction…” Hammer and Tongues said in a statement yesterday.
The DPC is on record stating it will compensate Royal Bank depositors a maximum of $500 following the liquidation of the bank.
The bank was placed under provisional liquidation on February 20, 2013, after it surrendered its licence when it failed to secure new investors.
This decision followed failure by the bank to meet Reserve Bank of Zimbabwe minimum capital thresholds within the stipulated regulatory time frames.
The decision was also influenced by the bank’s failure to conduct banking business in accordance with sound administrative and accounting practices, and risk-management procedures.
Investigations by the central bank had indicated that the institution was not in a safe and sound financial condition.
As at June 30, 2012, Royal Bank was critically under capitalised with a core capital of $1,850 million, which was way below the minimum regulatory capital requirement of $12,5 million for commercial banks at the time.
The minimum capital requirements have since been increased to $100 million for commercial banks.
The bank was also saddled with chronic liquidity challenges.
Relative to the balance sheet size, the bank had a huge negative liquidity gap of $3,03 million in the critical 0-7 day time band as at June 14, 2012.
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