Royal Bank Zimbabwe

Royal Bank Zimbabwe
Private
Industry Financial Services
Fate Liquidation
Founded 2001
Defunct 2012
Headquarters Harare, Zimbabwe
Key people
 Peter Simhanga Chikumba
Chairman
Jeffrey Mzwimbi
Executive Director
Products Loans, Savings, Checking, Investments, Debit Cards, Credit Cards, Mortgages
Website Homepage

Royal Bank Zimbabwe, whose complete name is Royal Bank Zimbabwe Limited, but is commonly referred to as Royal Bank, was a commercial bank in Zimbabwe. It was one of the licensed commercial banks in the country.[1]

Overview

Royal Bank was a small financial services provider in Zimbabwe. As of June 2012, the bank's total asset valuation is not publicly known. The shareholder's equity in the bank is estimated at about US$12.5 million, the minimum capital requirement for a commercial bank in Zimbabwe, effective December 2010.[2]

History

The bank was founded in 2001. In 2004, the Reserve Bank of Zimbabwe (RBZ), the national banking regulator, closed the bank down, together with Barbican Bank and Trust Banking Corporation. The assets of the three shuttered banks, were merged, to form Zimbabwe Allied Banking Group (ZABG).

In September 2010, the RBZ reversed itself and re-issued the commercial banking licenses of the three banks that had been closed. Royal Bank re-opened in February 2011, after six years of forced closure.[3] ZABG also retained its banking license. As of December 2010, the number of licensed commercial banks in Zimbabwe, was nineteen.[4]

In March 2012, Zimbabwean media reported that Commercial Bank of Africa Group, a Kenyan financial services conglomerate, had agreed to acquire a 62% stake in Royal Bank of Zimbabwe.[5][6] However, both parties failed to finalize on the deal within given regulatory time frames thus the deal lapsed.[7]

Ownership

As of June 2012, Royal Bank Zimbabwe is a privately owned financial institution. The detailed shareholding in the bank is not publicly known at this time.

Closure and liquidation

On July 27, 2012, the board of directors of Royal Bank Zimbabwe resolved to surrender the institution’s banking licence to the Reserve Bank of Zimbabwe and shut down its business in the country. This followed the determination by the Reserve Bank of Zimbabwe that Royal Bank was no longer in a "safe and sound financial condition". Board of directors' resolution was due to under capitalization of the bank, accumulated of losses, liquidity challenges and high level of non-performing loans.[7] The central bank is in the process of liquidatin Royal bank and paying off depositor funds.[8]

Branch network

As of June 2012, Royal Bank maintains a network of branches at the following locations:[9]

  1. Main Branch - 8th Floor Takura House, 67 Kwame Nkrumah Avenue, Harare
  2. Karoi Branch - 9 Harris Street, Karoi
  3. Gwanda Branch - 6 Fourth Avenue & Lawley Street, Gwanda
  4. Nyanga Branch - 18 Rochdale Road, Nyanga
  5. Chegutu Branch - 110 Queen Street, Chegutu
  6. Lobengula Branch - 9 & 10 Lobengula Mall, 6th Avenue Extension, Bulawayo
  7. Hwange Branch - Coronation Drive, Hwange
  8. Rusape Branch - 13 Robert Mugabe Street, Rusape
  9. Kadoma Branch - 156 Herbert Chitepo Street & Mukwati Street, Kadoma
  10. Ascot Branch - Shop 7 Ascot Complex, Bulawayo
  11. Chipinge Branch - 75 Main Street, Chipinge
  12. Marondera Branch - 253 Shop 2, The Green, Marondera
  13. Kwekwe Branch - 35 North Mandela Way at 3rd Street, Kwekwe

See also

References

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