RBZ cancels building society licences for ZB and FBC

The Reserve Bank of Zimbabwe (RBZ) has cancelled the licences of ZB Building Society and FBC Building Society following operational changes at the two financial institutions, the central bank has announced.

In separate public notices issued on Tuesday, the RBZ Registrar of Building Societies, Mr Phillip Madamombe, said ZB Building Society's licence was cancelled after the institution voluntarily surrendered it, while FBC Building Society's registration was terminated following its merger with FBC Bank.

In the case of ZB Building Society, the RBZ said the cancellation was effected in terms of section 14 of the Building Societies Act after a formal request by the institution. "This follows the institution's voluntary surrender of its licence and request for its cancellation in terms of section 14 (3) of the Building Societies Act," the notice read.

The central bank said ZB Financial Holdings Limited, the shareholder of ZB Building Society, resolved to surrender the licence and proceed with a voluntary liquidation of the building society. Following the move, ZB Financial Holdings Limited will remain with one banking subsidiary, ZB Bank Limited.

The RBZ said the decision and subsequent process were structured to ensure a smooth exit of ZB Building Society from the banking sector while safeguarding depositors' funds. It said the institution issued a 90-day notice to customers between May 28 and August 31, 2025, in line with the Consumer Protection Framework, advising them of the planned closure of accounts.

Customers were given the option to migrate their accounts to ZB Bank Limited or to another banking institution of their choice. The RBZ said some depositors opted to transfer their accounts, while those whose deposits were not migrated would receive full reimbursement through the liquidation process.

Following an assessment of the institution's financial position as at September 30, 2025, the RBZ said ZB Building Society was found to be solvent, with sufficient liquid assets to meet all its obligations. "Accordingly, ZB Building Society was granted consent to proceed by way of voluntary liquidation and was directed to ensure that all its creditors are paid in full and without delay," the central bank said.

As a result of the cancellation of its registration, the RBZ said ZB Building Society is no longer a building society as defined under the Building Societies Act.

In a separate notice, the RBZ announced the cancellation of FBC Building Society's licence following the approval of a merger between FBC Bank Limited and FBC Building Society. The approval was granted by the Minister of Finance, Economic Development and Investment Promotion at the request of FBC Holdings Limited, in terms of section 25(5) of the Banking Act.

The central bank said the merged entity will continue operating as FBC Bank Limited, while the building society licence was surrendered for cancellation as part of the merger process.