Mozambique: Central bank withdraws license from Mapiko, savings and credit cooperative

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Mozambique: Central bank withdraws license from Mapiko, savings and credit cooperative

4:05 CAT | 18 Dec 2019

File photo: Lusa

The Bank of Mozambique has cancelled the operating license of Mapiko, a savings and credit cooperative, the country’s central bank has announced.

“The Governor of the Bank of Mozambique has decided to revoke the authorisation for the exercise of the activity granted to Mapiko Savings and Credit Cooperative,” the statement reads.

The measure, authorised by Bank of Mozambique Governor Rogério Zandamela, comes in response to a request for the cessation of activities of the institution.

The central bank has ordered the dissolution and liquidation of the company, which must now commission a Deposit Guarantee Fund to “perform all acts necessary to liquidate and share the institution’s assets”.

Since taking office in 2016, Governor Zandamela has advocated reforms and fiscal discipline to strengthen the Mozambican banking system, including the increase of banks’ solvency ratio from 8% to 12%.

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, which was owned by the National Institute of Social Security, saying it was in an “unsustainable situation”. A Deposit Guarantee Fund was activated.

Prior to liquidating Nosso Banco, the Mozambican central bank in September suspended the bank’s board of directors and executive committee. The regulator injected about 108 million euros into the bank to stop a collapse that risked undermining the entire Mozambican financial system, it reported at the time.

Source: Lusa