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The Bank of Mozambique (BM) has revoked the activity licenses of two credit unions and five bureaux de change, a statement issued by the bank today announces.
Credit unions Mulheres de Nampula [Women of Nampula] and UGC had their licenses revoked because of the resignation of partners and degradation of the main prudential indicators, respectively.
The central bank also revoked the activity licenses of five exchange bureaux, namely Executivo Câmbios, Sara Moçambique, Al-Meca, Acácio Câmbios and Sarbaz Câmbios
Among the reasons for revoking the licenses, mainly on the initiative of the bureaus themselves, is the “bad business environment” and unavailability of partners. In some cases, the bank found violations of the laws and regulations governing the activity of credit institutions and financial corporations in the country.
The central bank has ordered the dissolution and liquidation of the companies, which must now designate deposit guarantee funds to perform all acts necessary for their liquidation.
On Monday, the Bank of Mozambique cancelled the activity license of Mapiko, another savings and credit cooperative.
Since taking office in 2016, Bank of Mozambique governor Rogério Zandamela has been pursuing a policy of reforms and fiscal discipline designed to strengthen the Mozambican banking system.
In June of this year, the Bank of Mozambique suspended the executive directors of Gapi investment company for “systematic non-compliance with the rules governing the operation of credit institutions”.
In 2016, the Bank of Mozambique ordered the dissolution and liquidation of Nosso Banco, owned by the National Institute of Social Security (INSS) and found to be in an “unsustainable situation”, and a deposit guarantee fund was activated.
In September of the same year, before the liquidation of Nosso Banco, the Mozambican central bank suspended the board of directors and executive committee of Moza Banco, thereafter injecting about €108 million into the bank to forestall a collapse that it said had the potential to undermine the country’s entire financial system.Source: Lusa
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