'Steward Bank sound, liquid'

HARARE - Econet Wireless Zimbabwe (Econet) says its banking subsidiary, Steward Bank, is sound and will not be affected by the prevailing liquidity crisis.

Douglas Mboweni, Econet’s chief executive, yesterday said since taking over the financial institution — formerly known as TN Bank ? the group had implemented tough restructuring measures.

“We brought in experts who looked very carefully at what was needed to operate a bank successfully in a market with no lender of last resort.

“We cleaned up the balance sheet, wrote off bad loans, and fully recapitalised the bank. We eliminated all systemic weaknesses,” he said.

Mboweni, whose company controls 100 percent of Steward Bank, added that “in a market with no lender of last resort, the shareholder of the bank must be very strong financially and the bank must be properly capitalised.”

He also said that funds from EcoCash are managed through a special trust arrangement set up with the approval of the Reserve Bank, and the trust has its own independent trustees, who have nothing to do with the bank or its shareholders.

“We do not touch that money. If you send money, we have it, and we do not on lend it. If every single person came for their money tomorrow, we will have it.

“We have every single cent of that money. If an agent fails to pay, we will pay, and if the bank fails to pay, Econet will pay,” he said.


Comments (6)

Ndokuti bank!

chids - 19 December 2013

l like your confidence Mr Mboweni (Econet will pay) now thats what l am talking about come rain or hell storm you will get your money.

ronald ncube - 19 December 2013

Vakomana munodada nemari yenyu isiri yekuba

bururu - 19 December 2013

iam proud of you guys

Johannes Kwangwari - 20 December 2013

Ndokuti Strive ndiye lender of last resort we Steward Bank. Chi bag chine bhidza remadhora chiri pa-side. Kwete ana nda nda arikuitwa nana Stephen Gwasira ve Allied. Ka one

simba - 20 December 2013

Chero vakaita godo Econet ndizvo.... kutaura zvisingataurwi neRBZ

tozvireva - 20 December 2013

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