THE Reserve Bank of Zimbabwe (RBZ) has cancelled the registration of Barbican Bank after it failed to commence banking business within the required time frame, the apex bank said on Friday.
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In a notice, RBZ said it had taken the move after the Ministry of Finance upheld its decision to cancel the registration.
Barbican, founded by top economist Mthuli Ncube, had appealed to Treasury against the cancellation of its registration as a banking institution.
“Barbican Bank failed to raise the required capital levels despite the extension granted. On February 14 2013, the minister of Finance upheld the Reserve Bank’s decision to cancel Barbican’s licence,” RBZ said.
Barbican was re-registered as a banking institution in 2010 following the unbundling of the ZABG Group into Trust, Royal, ZABG and Barbican.
Trust, Royal and Barbican had been merged by the apex bank after running into liquidity problems.
RBZ said following the re-registration, Barbican failed to commence banking business “within a period of 12 months as required in terms of the Banking Act on account of lack of adequate capitalisation and absence of risk management and corporate governance structures necessary for the conduct of banking businesses”.
In November 2011, the Registrar of Banks issued a notice of intention to cancel the bank’s registration.
Barbican appealed to the Ministry of Finance and was given up to July 31 last year, failure of which the licence would be cancelled.