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RBZ on StanChart Zimbabwe exit

by Staff reporter
25 Apr 2022 at 08:47hrs | Views
THE Reserve Bank of Zimbabwe (RBZ) says the divestiture of Standard Chartered Bank Zimbabwe Limited will result in change of ownership and control of the giant banking institution, which will continue to operate normally under the purview of the Central Bank.

In statement on Friday RBZ Governor, Dr John Mangudya, said the Apex Bank has been formally notified of the Standard Chartered Bank Group exit from Zimbabwe and some other countries in the Middle East and Africa.

These include Angola, Cameroon, Gambia, Jordan, Lebanon and Sierra Leone. The move is in line with the group's new business model and strategic repositioning.

"The bank wishes to advise the public that, Standard Chartered Bank Zimbabwe Limited has formally advised that the Standard Chartered Group has made a decision to divest of its business interest in Zimbabwe," said Dr Mangudya.

"While the divestiture will result in change of ownership and control of Standard Chartered Bank Zimbabwe Limited, the latter which is currently adequately capitalised, liquid and profitable will continue to operate normally under the purview of the Bank."

Standard Chartered Bank is the oldest financial institution in Zimbabwe, having been established as Standard Bank in 1892.

The current bank was created when Standard Bank merged with Chartered Bank in 1969.

Meanwhile, Standard Chartered has assured its clients of the safety of their deposits as it transitions out of the Zimbabwean market after more than 130 years of  operations.

The bank, which had already scaled down operations to just two branches, announced its exit from Zimbabwe recently.

Standard Chartered Bank Zimbabwe acting head consumer, private and business banking Mr Protasius Jokonya last week said that the bank was committed to managing the exit process to minimise any disruption to clients.

"Please be assured that we will continue to serve you as usual during the transition. Your deposits and monies remain safe, and you can continue to perform banking transactions as per normal," he said in a message to clients," he said.

"We will continue to update you on any relevant developments during the transition."

Announcing the exit, Standard Chartered Group CEO, Bill Winters, said the bank was shifting focus to simplifying its business.

"As we set out earlier in the year, we are sharpening our focus on the most significant opportunities for growth while also simplifying our business," he said.

The markets that will be closed generated around one percent of Standard Chartered's  total group 2021 income and a similar proportion of profit before tax.

Source - The Chronicle