Banco Moza says recapitalization proceeding within expectations

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Banco Moza says recapitalization proceeding within expectations

2:45 CAT | 02 Mar 2017

Moza Banco, the object in September last year of intervention by the Bank of Mozambique, said yesterday that its recapitalization was proceeding within expectations and that the institution was functioning normally.

In a statement aimed at rebutting unfavourable perspectives on its situation, Moza Banco says it had been able to recover confidence in the market and with the general public.

“The rescue of this institutional credibility is very much in keeping with the commitment that the Bank of Mozambique has given regarding the conduct of this process, through the intervention carried out on September 30 of last year,” the statement reads.

Bank of Mozambique has said on several occasions that the recapitalization of Moza Banco would undoubtedly be brought about, regardless of the form and the players who would participate in the process.

“We want to assure all Moza Banco stakeholders, whether they are clients, suppliers, employees or other partners, that we strongly believe the institution will continue to carry out its mission in the national financial system and economy in a solid and well-balanced way,” the statement, signed by Moza Banco president João Figueiredo, said.

At the end of January, the General Shareholders’ Meeting of Moza Banco, owned by Portugal’s Novo Banco, approved a capital increase of 8.17 billion meticais (EUR107.7 million) after the Bank of Mozambique injected around 8 billion meticais (EUR105 million) into Moza Bank in December to halt its collapse and avoid an “earthquake” in the Mozambican financial system.

Two months after its intervention in Moza Banco, the bank supervisor liquidated O NOsso Banco, owned by the National Social Security Institute (INSS), and activated the deposit guarantee fund, providing for a refund of only 20,000 meticais (EUR240 ) for individual depositors, excluding companies.

Despite its small size, O Nosso Banco’s bankruptcy launched a wave of alarm, leading the central bank to deny any ‘reasons to panic’ and to assure the public that the financial system was sound, with average solvency ratios of 14 percent, well above the 8 percent required by the supervisory body.

Unlike O Nosso Banco, which had only a little more than 5,000 private and 900 commercial depositors and represented only one percent of the country’s banking system, Moza has more than 93,000 private and 8,000 commercial customers and a 7.71 percent share, being the fourth largest Mozambican bank, with 48 branches across the country.

Source: Lusa