I found something interesting in IVerify - Investrust Bank Plc taken over by the Bank of Zambia

Investrust Bank Plc taken over by the Bank of Zambia

True

The BOZ Assistant Director’s press statement explained the reasons for the takeover of Investrust Bank Plc due to insolvency. BOZ’s actions are in accordance with Section 64 of the Banking and Financial Services Act No. 7 of 2017 (BFSA). BOZ called on depositors to remain calm as an implementation of the resolution is being worked on by the Central Bank with key stakeholders, including the Government, to ensure depositors do not lose any of their money. A further announcement regarding the finalized resolution plan is expected from BOZ in due course.

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Verified Apr, 03 2024

Claim

On April 2nd, 2024, social media and websites were flooded with posts and articles about the Bank of Zambia (BOZ) taking over Investrust Bank Plc due to insolvency. This news sparked public concerns regarding the safety of clients’ deposits, the welfare of the bank’s employees, and the bank’s future.

Rating Justification

iVerify Zambia has verified that the takeover of Investrust Bank PLC by the Bank of Zambia (BOZ) due to insolvency as widely reported on social media and online news outlets is true.

According to the BOZ press statement obtained by iVerify Zambia from the Central Bank’s website, the takeover of Investrust Bank is in effect as of April 2nd, 2024. The statement issued by the Assistant Director of Communications states that the takeover of the bank was a regulatory action under Section 64 of the Banking and Financial Services Act No. 7 of 2017 (BFSA), to safeguard financial stability and public interest.

The statement further states that BOZ held numerous engagements with Investrust Bank shareholders to address the bank’s financial difficulties, but these efforts proved unsuccessful in resolving the insolvency. It also emphasizes the central bank’s commitment to protecting depositors and states that another statement on the finalized resolution plan would be issued in due course.

Investrust Bank Plc, commonly known as Investrust Bank, is a commercial bank in Zambia. It is licensed by the Bank of Zambia, the central bank and national banking regulator.

Investrust Bank is the latest financial institution to be taken over by BOZ over the years under similar circumstances.

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