Business / Companies
Trust Bank depositors' compensation now a reality
17 Jan 2014 at 16:04hrs | Views
The Deposit Protection Corporation says it will immediately pay all Trust Bank depositors a maximum insurable limit of $500 per depositor from the Deposit Protection Fund.
This follows the appointment of DPC as the provisional liquidator of the financial institution earlier this month.
Trust bank was placed under provisional liquidation by the High Court following the cancellation of the bank's license by the Reserve Bank of Zimbabwe in December last year over allegations of abuse of depositor's funds and violation of the provision of the Banking Act.
In a statement, DPC chief executive Mr John Chikura said the money would be paid out to all depositors immediately upon verification.
"Under its current mandate, DPC will immediately upon verification, pay all depositors up to the maximum insurable limit of $500 per depositor. Depositors of Trust Bank are therefore advised to collect Deposit insurance claims forms," DPC said.
The Deposit Protection fund's primary objective is to compensate depositors in full or in part in the event of insolvency of a contributory institution.
DPC said depositors and creditors with balances above the insurable limit would be advised on the liquidation process and date of the first meeting of creditors.
The closure of Trust bank marked the second time the bank has lost its license in 8 years after efforts to recapitalize the bank had all been futile.
This follows the appointment of DPC as the provisional liquidator of the financial institution earlier this month.
Trust bank was placed under provisional liquidation by the High Court following the cancellation of the bank's license by the Reserve Bank of Zimbabwe in December last year over allegations of abuse of depositor's funds and violation of the provision of the Banking Act.
In a statement, DPC chief executive Mr John Chikura said the money would be paid out to all depositors immediately upon verification.
The Deposit Protection fund's primary objective is to compensate depositors in full or in part in the event of insolvency of a contributory institution.
DPC said depositors and creditors with balances above the insurable limit would be advised on the liquidation process and date of the first meeting of creditors.
The closure of Trust bank marked the second time the bank has lost its license in 8 years after efforts to recapitalize the bank had all been futile.
Source - bh24
