Subscribers are hereby notified of the recent developments at Interfin Banking Corporation Limited (“Interfin”). This follows the announcement by the Reserve Bank of Zimbabwe to place the bank under the management of a curator.
In its statement, the RBZ highlighted inadequate capitalization, concentrated shareholding and abuse of corporate structures, high level of non-performing insider and related party exposures, chronic liquidity and income generation challenges, poor board and senior management oversight, as well as violation of banking laws and regulations. The directive was served in terms of the provisions of the Zimbabwe Banking Act, [Chapter 24:20], whereby Interfin will be placed under recuperative curatorship for a period of six (6) months.
GCR has rated Interfin since 2006, during which time it has remained in the non-investment grade band. In 2011, GCR accorded a non-investment grade long term national scale rating of BB+(ZW), which expired on 30 May 2012.
In terms of systemic risk, GCR is in the process of reviewing the Zimbabwean banks and will release further updates as necessary.
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