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The action taken by the Bank of Zambia (BoZ) to take over Investrust Bank PLC is aimed at protecting the integrity of the country’s payment systems and to ensure stability of the banking sector.
This is according to the Bankers Association of Zambia (BAZ) Chief Executive Officer, Leonard Mwanza, in a statement issued on Wednesday to react to the development.
Mwanza said the action was also meant to safeguard the public interest.
He assured the general public that services from the other Commercial Banks would remain uninterrupted during this transition.
He also said the action taken by the Central Bank was within its mandate.
“Members of the general public and customers of lnvestrust Bank PLC are hereby advised to remain calm and make use of banking services from other Commercial Banks, as further guidance is awaited from the Bank of Zambia.
“BAZ remains committed to ensuring payment systems stability, continuity of operations and quality service provision in the banking sector,” Mwanza said.
The BoZ took possession of Investrust Bank PLC on Tuesday due to insolvency.
This was after the Central Bank had numerous engagements with the shareholders to recapitalise the Bank which did not yield positive results on insolvency issue.
Investrust Bank becomes the second financial institution to be taken over by the Central Bank in a space of one year, after the Development Bank of Zambia (DBZ).
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