Friday, February 26, 2010

(LUSAKATIMES) BoZ chief assures Zambians on Finance Bank

BoZ chief assures Zambians on Finance Bank
Friday, February 26, 2010, 8:01

THE Bank of Zambia (BoZ) has said the recent changes in the administration set-up of Finance Bank will not negatively affect the bank’s financial standing in any way. BoZ Govenor Caleb Fundanga said the central bank was closely following the happenings at Finance Bank and had not noted any problems.

He also said the investigations by the Drug Enforcement Commission at Finsbury Park, a shareholder in Finance Bank Zambia, would not in any way affect the bank.

Speaking at a Press briefing in Lusaka yesterday, Dr Fundanga said Finance Bank was an independent legal entity and the investigations at Finsbury would not in any way affect the financial institution.

“Any action at Finsbury should not be seen to affect Finance Bank and, in fact, Finsbury has reduced its shareholding to 10 per cent from 25 per cent and the 15 per cent shares will be sold to an acceptable buyer,” Dr Fundanga said.

Dr Fundanga said the board changes at the bank were meant to strengthen it and make it stronger.

He said the BoZ was optimistic that Finance Bank would continue to operate without any disturbances.

He said Rajan Mahtani’s stepping down from the board was accepted by the BoZ and that the newly-appointed chairperson Jacob Mwanza was equally competent and credible.

Dr Fundanga said the BoZ would continue to monitoring Finance Bank so that the institution continued to operate within the confines of the law.

The role of BoZ is to supervise and regulate financial institutions in the country and Finance Bank is not an exception.

Dr Fundanga said Finance Bank was an important financial institution in Zambia as it served the remotest parts of the nation.

So far, he said, the assets of the bank were secure and implored the public not to panic about the future of Finance Bank.

And Dr Mwanza said his greatest challenge and responsibility was to broaden the ownership base of the bank.

He said it was the vision of the bank that the ownership encompassed as many Zambians as possible and soon, the shares of the bank would be floated on the Lusaka Stock exchange (LuSE).

Dr Mwanza also said he would ensure that Finance Bank was run professionally and observed the legal framework in the financial sectors.

[Times of Zambia]

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