The Reserve Bank of Zimbabwe (RBZ) has annulled the merchant banking license of Avis Bank Limited, citing the institution's failure to meet operational requirements and attract depositors since the license was issued on June 7, 2022. This action demotes Avis Bank to a standard company status, effective immediately.
The RBZ took this step under Sections 14 (1) (i) and Section 15 of the Banking Act. The Registrar's notice issued on Monday highlighted non-compliance with the necessary operational systems as the reason for the revocation. Since its inception over a year ago, Avis Bank has not managed to set up these systems or secure customer deposits, which are critical conditions for maintaining a merchant banking license.
While there are no customer deposits at risk due to the bank's non-operation, the central bank has released an advisory warning the public against conducting any banking transactions with Avis Bank. This cautionary statement aims to prevent any potential financial transactions that may assume Avis Bank's capability to operate as a licensed banking entity.
The RBZ's decision underscores its commitment to enforcing regulatory compliance and maintaining the integrity of Zimbabwe's banking system. The central bank's actions serve as a reminder of the rigorous standards institutions must meet to participate in the nation's financial services industry.
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