The Bank of Namibia has temporarily suspended Trustco Bank Namibia’s operations, with effect from Friday.
During the suspension period, the bank, which is owned by the Quinton van Rooyen family company, will not take any deposits, nor issue any loans until directed again by the central bank. However, customers will still have access to their bank deposits.
Trustco Bank Namibia has been operating in the Namibian market since December 2016, when it obtained a commercial banking licence after acquiring Fides Bank.
At the announcement of the suspension, the central bank said it consulted the finance ministry for the suspension to be effected pending non-compliance rectifications.
“The suspension is temporary and is subject to Trustco Bank rectifying stipulated and communicated instances of non-compliance,” the central bank’s governor, Johannes !Gawaxab, said in a statement on Friday.
The central bank expressed concern over Trustco’s internal environment and its failure to comply with orders and directives from the bank.
Bank of Namibia governor Johanness !Gawaxab said the suspension aims to safeguard the interests of internal and external stakeholders, including depositors, shareholders, creditors and the broader financial sector.
“The Bank of Namibia underscores the importance for Trustco Bank customers with outstanding credit facilities to fulfil their loan repayment obligations as per the agreed contractual terms. This will prevent potential credit bureau listings or other measures aimed at recovering such funds,” said !Gawaxab.
He added that the licence suspension is unrelated to ongoing litigation involving Trustco Bank.
“The public is hereby notified that the decision to suspend Trustco Bank’s banking licence is distinct from the ongoing litigation between Trustco Bank and the regulator in the High Court of the Republic of Namibia. Legal proceedings will continue as scheduled,” he said.
Email: shania@namibian.com.na
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