Investrust Bank’s Fate Raises Concerns, BOZ Steps In to Moderate
The recent announcement of the possession of Investrust Bank by the Bank of Zambia has stirred significant interest and concern within the financial sector, with experts weighing in on the potential implications and repercussions of this move.
In an official statement, the Bank of Zambia, the central bank, outlined its intention to conduct a thorough assessment of Investrust Bank’s assets before determining the appropriate course of action.
The central bank assured that transparent communication would be maintained throughout the process.
Economic analyst Mr. Kelvin Chisanga expressed sadness at the plight faced by Investrust Bank, foreseeing a possible liquidation process to address arising claims from investors and consumers alike.
Mr. Chisanga highlighted the far-reaching consequences of Investrust Bank’s closure, emphasizing its negative impact on public confidence in the banking sector and the broader economy.
He noted concerns about the safety of depositing funds in banks and the potential shift towards hoarding cash at home.
Moreover, Mr. Chisanga pointed out the practical challenges that businesses and households would encounter in their daily financial transactions without the support of Investrust Bank’s services, such as cheque accounts and payment processing.
Investrust Bank’s journey from a promising local banking institution to its current predicament reflects a significant shift in Zambia’s financial landscape.
As one of the founding members of the Lusaka Securities Exchange and among the first banks listed on the stock market, Investrust Bank has played a notable role in shaping the country’s business environment.
Economist Chisanga acknowledged the Bank of Zambia’s efforts to address legacy issues within the banking sector, highlighting the need for a strategic and transparent approach to ensure market confidence and foster local participation in the financial system.
