Trustco stops banking business

TRUSTCO Group Holdings has surrendered its banking licence to the Bank of Namibia (BoN) and stopped its banking business.

According to a statement by BoN spokesperson Kazembire Zemburuka on Friday, the central bank has cancelled the banking licence of Trustco Bank Namibia (TBN) and directed TBN to present its deposit repayment plan to the central bank on Tuesday (27 August).

This was confirmed by Trustco, which on its website said the banking portfolio accounted for less than 1% of its total investments.

Quinton van Rooyen, chairman of the board investment committee of Trustco Group Holdings, is quoted as saying: “In light of recent developments, Trustco has made the decision to exit from investing in deposit-taking institutions in Namibia.

“Our focus is now shifting towards non-deposit taking financial services, where we see tremendous growth potential.”
According to Zemburuka, the BoN received communication from Trustco, expressing a wish to discontinue its banking business with immediate effect and return TBN’s banking licence.

This follows on the suspension of TBN’s authorisation to operate as a banking institution in August 2023.
“The suspension was temporary and subject to TBN rectifying certain stipulated and communicated instances of non-compliance with the Banking Institutions Act,” said Zemburuka.

He added that at the end of the suspension period, TBN remained non-compliant with the matters that had triggered its suspension.

Zemburuka said on 29 July, the BoN issued a notice of its intention to cancel TBN’s authorisation to conduct banking business due to its failure to rectify the conditions that had led to its suspension.

The statement added that TBN was given an opportunity to make representations why BoN should not cancel its authorisation to operate as a banking institution.

TBN did not make the called-for representations, and instead informed the central bank of its and Trustco Group Holdings’ decision to discontinue its banking business, he said.

Zemburuka further said the Bank of Namibia has taken note of Trustco Group Holdings’ public statement that depositors’ funds are guaranteed and held by the Bank of Namibia.

“This statement is misleading and devoid of all truth. The Bank of Namibia reiterates that TBN holds depositors’ funds, and that it remains TBN’s responsibility to repay all depositors’ funds,” he said, adding that the BoN had previously issued a directive to TBN to ring-fence depositor funds in a bank account with a banking institution in Namibia.
– email: matthew@namibian.com.na
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