The Prudential Authority of the South African Reserve Bank has given CBZ Holdings, the biggest bank in Zimbabwe, permission to establish a presence in the country.
“Notice is hereby given for general information, in accordance with the provisions of section 30 of the Banks Act, that CBZ Bank Limited, an institution that lawfully conducts business similar to the business of a bank in Zimbabwe, has been granted permission by the Prudential Authority,” stated Fundi Tshazibana, CEO of the Prudential Authority, in a notice on Friday.
Nevertheless, it is not allowed for the representative office to conduct banking business in South Africa. South Africa’s banking regulations allow a foreign bank’s representative office to promote and assist the foreign bank’s activities.
It is, however, against the law for the foreign bank to accept deposits, solicit deposits, or advertise deposits, all of which are outlawed in the country.
A recent management transition at the Harare-based bank was brought about by the resignations of board chairman Marc Holtzman and CEO Blessing Mudavanhu of the Zimbabwean bank.
The period of the departure coincides with “the business beginning to pursue a growth plan”.
There are 34 banks allowed through issuing of licences to operate in South Africa.
