Business Reporter
THE Deposit Protection Corporation (DPC) has started paying out depositors of the now defunct Trust Bank, which is under provisional liquidation.
A few weeks ago, the DPC announced that it has paid out $477,000 to Genesis and Royal banks’ depositors.The figure paid out represents about half the $812,523,14 of total insured deposits held by the DPC.

In a notice yesterday, the Reserve Bank of Zimbabwe said people with deposits locked in Trust Bank should approach the Deposit Protection Corporation.

“The Deposit Protection Board is currently paying out depositors up to a maximum of $500 per type of account, per depositor. Members of the public with deposits in Trust Bank Corporation Limited are advised to approach the Deposit Protection Corporation,” said the Central Bank, adding that Trust Bank return date had been set for April 8.

The troubled financial institution was placed under provisional liquidation on October 8, 2014 with the High Court appointing the Deposit Protection Corporation the provisional liquidator.

The monetary authorities said Trust Holdings Limited, the major shareholders of the bank, may seek capital injection from prospective shareholders.

“The major shareholders of the bank may, during the period between October 8, 2014 and April 8, 2015, engage any prospective shareholders to inject capital into the institution and restore its safety and soundness to levels required as per prudential standards.

Meanwhile, it is hoped that DPC will start paying Allied Bank depositors once the provisional order has been granted by the High Court.

Early this month RBZ announced that it had cancelled Allied Bank’s operating licence on the basis that the institution was no longer in a safe and sound condition.

The deposit protection is a scheme established by government to protect depositors against the loss of their insured deposits placed with banks in the event of a bank failure.

Through the Deposit Protection Fund established under Section 13 of the DPC Act (Chapter 24:29), the corporation has been capacitated to execute one of its primary objectives of compensating depositors in full or part, for losses incurred in the event of insolvency of a contributory institution.

 

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