ZABG To Return to Original Owners

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By SARAH NCUBE

Published: November 11, 2009

ZIMBABWE – HARARE – The Zimbabwe Allied Banking Group, an amalgamation of banks that were faced with collapse between 2003 and 2004, is to be returned to the original owners.

Trust Bank, Royal Bank and Barbican Bank, had their assets and staff merged at the beginning of 2005 to form ZABG.

There had been various legal fights over the decision to force the merger by the Reserve Bank of Zimbabwe.

In surprise move, RBZ governor Gideon Gono, last week told the media that the central bank was now returning the bank to the original owners.

“As at 31 October 2009, two commercial banking institutions, namely CFX and ZABG and one merchant bank , NDH had capital levels below the prescribed minimum capital requirements.

“Regarding ZABG, the institution is being returned to the original owners, following compliance with various requirements on the back of ongoing discussions.

“ZABG will be given more time to comply with the prescribed minimum paid up equity capital requirements,” said Dr Gideon Gono.

At one time it was expected to have been the richest bank in terms of asset base but this failed dismally. The Zimbabwe Telegraph reports.