Trustco Bank is now closed and will no longer operate.
This was announced today by the Bank of Namibia (BoN).
BoN’s spokesperson Mr Kazembire Zemburuka said in a statement that BoN received today a message from Trustco Group Holdings (TGH) stating that TGH has made a decision for Trustco Bank Namibia (TBN) to discontinue its banking business and return its banking license to the regulator with immediate effect.
On 18 August 2023, the Bank of Namibia, suspended Trustco Bank’s licence, and ordered TBN to rectify certain instances of non-compliance with the, now repealed, Banking Institutions Act, 1998.
At the end of the suspension period, TBN remained non-compliant with the identified provisions of the Act and the matters that caused its suspension.
On 29 July 2024, the Bank of Namibia issued a notice of its intention to cancel TBN’s authorisation to conduct banking business in terms of section 15(2) of the Act due to its failure to remediate the suspension conditions.
“TBN was afforded an opportunity to make representation as to why the Bank should not cancel its authorisation to operate as a banking institution,” Zemburuka said.
“The Bank noted that instead of making the called-for representation as per the provisions of the Act, TBN opted to inform the Bank of Namibia of TGH and TBN’s decision to discontinue its banking business, with further resolve to return its banking license for cancellation with effect from today.
“The Bank of Namibia, therefore, would like to inform the public that it has noted TBN’s decision to discontinue its banking business and that the process of winding down TBN has commenced as per the Act.”
As a signal that sends out a message to the public that Trustco Bank will not pay back money which was in the accounts of its clients, Trustco Bank made a public statement saying that depositors’ funds are guaranteed and held by the Bank of Namibia. But Bank of Namibia denied it.
“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.
“The Bank of Namibia had previously issued a directive to TBN to ringfence depositor funds in a bank account held with a banking institution in Namibia.
“The Bank has directed TBN to present its deposit repayment plan to the Bank on Tuesday, 27 August 2024.
“The Bank wishes to assure members of the public that the Bank will endeavour to ensure that depositors are not negatively impacted by the decisions taken by TGH and TBN.
“The Bank of Namibia remains committed to fostering banking system stability and integrity
by executing its supervisory mandate in line with the provisions of the Act.”
In the photo: Chairman of Trustco Group Holdings’ Board of Investment Mr Quinton van Rooyen.
