TRUST Bank Corporation Limited depositors are now receiving reimbursements, from the Deposit Protection Corporation (DPC) after the financial institution was closed in 2013.
BATANAI MUTASA OWN CORRESPONDENT
A deposit protection fund, administered by the DPC, serves the primary function of compensating depositors in full or in part for losses incurred in the event of insolvency of a contributory institution.
In a public notice issued this week, the Reserve Bank of Zimbabwe (RBZ) said the DPC is currently paying out depositors up to a maximum of $500 per Trust Bank depositor.
“Meanwhile, Trust holdings Limited, the major shareholders of the bank may, during the period between 8 October 2014 to 8 April 2015, engage any prospective shareholders to inject capital into the institution and restore its safety and soundness to levels required as per prudential standards,” the RBZ said.
The bank was placed back into provisional liquidation on October 8 2014 after shareholders withdrew their court application against liquidation.
According to the DPC, currently, 35% of Trust Bank Corporation’s insured deposits amounting to $115 000 have been paid out.
The payments come as a relief to depositors failing to access funds after their banks closed down amid reports that the deposit protection fund was undercapitalised.
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Trust Bank was placed under liquidation after its licence was cancelled over allegations of abuse of depositor funds and violation of the Banking Act.
Recently, Allied and Interfin banks joined the ever increasing number of institutions on the liquidation list increasing fears of the DPC’s inability to meet mandatory obligations.
Earlier this month, the DPC announced that it had paid out about $477 000 to depositors of Genesis, Trust and Royal banks.
However, the DPC said a lack of response from depositors was hindering the process.
“Payments to Genesis, Trust and Royal Bank depositors are still in progress. The response from the depositors of the above mentioned banks has increased slightly,” it said.
In light of this, the RBZ implored members of the public with deposits in Trust Bank Corporation Limited to approach the DPC and forward claims for reimbursement.
