Relief in sight for Royal Bank clients

Up to 34 properties belonging to the now defunct Royal Bank will go under the hammer as the Deposit Protection Corporation (DPC) moves to recover creditors’ funds.

The bank was placed under provisional liquidation on February 20 last year when it surrendered its operating licence to the central bank after it failed to secure new investment.

Last week  Allied Bank, which like Royal emerged from the ashes of the Zimbabwe Amalgamated Banking Group – which was created by the central bank in 2004 to warehouse the assets of three troubled banks, also surrendered its operating license to the central bank.

In a notice yesterday, the auctioneers announced that a number of commercial and residential properties belonging to the bank would be auctioned on January 30.

“Duly instructed by the DPC, liquidators of Royal Bank Zimbabwe Limited under liquidation we will sell the following properties by auction,” the auctioneers, Hammer and Tongues said in a notice.

As at June 30, 2012, Royal Bank was heavily undercapitalised with a core capital of $1.850 million, which fell short of the minimum regulatory capital requirement of $12.5 million for commercial banks at the time.

The monetary authorities have since raised the minimum capital requirements for commercial banks to $100 million by year 2020.-The Source

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