Bank of Namibia’s Governor Mr Johannes !Gawaxab has announced that after consultation with the Minister of Finance and Public Enterprises, the central bank has decided to give an order for Trustco Bank Namibia (Trustco Bank) to stop operating as a banking institution.

The decision made on 18 August 2023 to suspend Trustco Bank’s licence is temporary and subject to Trustco Bank rectifying certain instances of non-compliances within six months counting from 18 August 2023.

“In the event that Trustco Bank, at the end of the suspension period, remains non-compliant with identified provisions of the Banking Institutions Act and the matter that caused its suspension, the Bank of Namibia will take further action as mandated by the Act,” !Gawaxab said in a statement.

The Governor of Bank of Namibia stated that the decision to suspend Trustco Bank’s licence resulted from numerous non-compliance “and serious shortcomings, of which several internal control weaknesses remain unresolved. This is despite several repeated interventions by the Bank over an extended period directing Trustco Bank to rectify these shortcomings.”

Despite the suspension, however, customers of Trustco Bank will have access to their deposits at Trustco Bank.

“Furthermore, the Bank of Namibia emphasizes the importance of Trustco Bank customers who have credit facilities to maintain and honour their loan repayment obligations in terms of their agreed contractual terms to prevent listing on credit bureaus and/or any other measures that may be taken to recover such funds,” !Gawaxab said.

In the photo: Bank of Namibia Governor Johannes !Gawaxab.