The Central Bank of Zambia (BoZ) has informed the public that it has taken possession of two financial institutions, the Development Bank of Zambia and Betternow Finance Company, effective from July 21, 2023.
This action was taken due to non-compliance with the Banking and Financial Services (Capital Adequacy) Regulations by the Development Bank of Zambia, and the insolvency of Betternow Finance Company.
The Bank of Zambia has determined that both institutions were unable to resolve their respective financial issues despite consistent engagements.
“Despite consistent engagements by the Bank of Zambia, the shareholders and the Board of Directors of Development Bank of Zambia have been unable to resolve the regulatory capital deficiency of the institution,” the Bank of Zambia stated.
Similarly, the Board of Directors of Betternow Finance Company has been unable to resolve the deteriorating financial performance and condition of the institution.
The Bank of Zambia has exercised its authority under the law to safeguard the interests of the public and protect the integrity of the financial system.
Both the Development Bank of Zambia and Betternow Finance Company are now under the possession of the Bank of Zambia.
During the period of possession, the Bank of Zambia will prepare a statement of affairs of the assets and liabilities of the institutions and take any other action it deems fit in accordance with the provisions of the Banking and Financial Services Act, 2017.
The Development Bank of Zambia is a non-deposit-taking financial institution, while Betternow Finance Company Limited is a non-deposit-taking financial institution.