Troubled MetBank exits Gwanda


METBANK has closed its Gwanda branch as Zimbabwe’s banking sector continues to sing the blues due to a generally tough economic environment, the bank’s executive director has announced.

Albert Ncube
Own Correspondent

In a notice posted outside the banking hall, Ephraim Chawoneka said the Gwanda branch would be merged with the Bulawayo branch.

“We would like to advise you that Gwanda branch will be merging with the Bulawayo branch with effect from October 28 2014,” he wrote.

“The last day of business will be the 27th and thereafter all transactions will be held from our Bulawayo branch.”

Depositors had for a long time now been failing to access their funds from the institution, leading to winding queues at the bank.

Metbank is one of the banks that have been in trouble this year, mainly due to lack of capital.

Before the $100 million minimum capital requirement, some local banks were struggling to raise the then stipulated $25 million minimum capital.

Metbank’s core capital went up marginally to $25,4 million as at September 30 2013 from $25,2 as at August 31 2013.

However, it had negative liquidity and cumulative gaps of $28,63 million and $50,56 million respectively in the seven-day and 30-day time periods as at October 24 2013.

This was mainly due to non-performing loans which amounted to $29,43 million as at September 30 2013.

Metbank resolved to dispose of its Lot J Borrowdale property to boost its core capital.

Allied Bank is also struggling with depositors failing to access their funds at its Gwanda branch.