AfrAsia Bank solvency challenges mount

HARARE - AfrAsia Bank Limited (AfrAsia) depositors yesterday complained bitterly that they had failed to access cash from the bank.

While AfrAsia was recently limiting withdrawals due to solvency challenges, matters came to a head yesterday when depositors spent the whole day at the bank's Graniteside branch without accessing cash.

A few customers were eventually allowed into the banking hall late afternoon and were allowed to make withdrawals of only $50.

A few other customers were still milling outside the banking hall, trying to negotiate their way in.

AfrAsia last week admitted that it was suffering the effects of the prevailing acute liquidity crisis.

“…liquidity constraints in the local economy have affected our normal operations,” the bank’s spokesperson Sekai Chitemerere said.

“In an effort to ensure that all our clients have access to available cash, our branches have had to introduce intermittent daily withdrawal limits,” she said, adding that the institution was “working flat out to normalise the situation.”

This comes as the bank, recently re-branded from Kingdom Bank following a  62,5 percent share takeover by AfrAsia Bank Mauritius (ABM), is also making frantic efforts to raise $100 million in fresh capital.

 

Comments (7)

My advise to depositors, look for schools who pay through this bank, pay fees for the parents and get the cash.

Maita Manyuka - 17 September 2014

How by transfer from you account to the school account and you are done.

Maita Manyuka - 17 September 2014

hezvo

conduit - 17 September 2014

For you to make a transfer the bank need to have money. It seems the bank is bankrupt so you wont be able to make the transfer to the school. My advice is for people with money in Kingdom to make a move now by taking it away. Be it unit trusts, shares, deposits, pensions. Houses are cheap now and land, you can buy these for now and re-sell once you have a good home for your money. Just my 2 cents

mafikizolo - 17 September 2014

Maita, no school will bank with an institution that cant pay out either cash through rtgs. Mafikizolo, you cant take money when the bank does not have it. Liquidity is not just cash but the ability to meet obligations in monetary value when they fall due. In this case, the ability is not thre.

mazola wa dhabu dhabu - 18 September 2014

Maita Manyuka uri dofo rekupedzisira. how can you ask the bank to do a transfer when they dont have mone/cash. they are giving you $50 becoz they dont have money. how then can they do a transfer of money to another bank to pay fees when they dont have money. you can submit a transfer request but there will be no transfer coz the bank has no money. that transfer will "bounce" coz in Afraasia account there is no money so nobody will honour the transfer. just like a cheque that bounces becoz one's account is not fully funded. afraasia's account is not fully funded. get it dude

dude Maita Manyuka - 18 September 2014

Where is Chanakira? is he still in the picture?

Bismark - 22 September 2014

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