THE Bank of Namibia (BoN) is pushing to liquidate the troubled Trustco Bank Namibia Ltd (TBN) through the High Court.
This comes after TBN approached the High Court to allow the institution to function as a fully fledged bank in Namibia.
BoN issued a statement on Wednesday (September 28, 2022) in which governor Johannes !Gawaxab said the push for liquidation culminates from a series of regulatory engagements and interventions that have failed to restore TBN’s governance and viability to acceptable regulatory levels since 2020.
This is in response to a statement issued by Trustco, claiming that the BoN denied an offer by Trustco Group Holdings Ltd (TGH) to capitalise TBN in an amount of N$1,0 billion
“Some of the shortcomings identified over this period and not satisfactorily resolved by TBN and its shareholders include severe flaws in the bank’s risk management practices and systems, its failure to maintain liquidity ratios within the prescribed ratios, and a failure to comply with agreed-upon directives to re-capitalise the institution,” said !Gawaxab.
TBN has been operating in the Namibian market since 2016.
!Gawaxab said TBN is viewed as commercially insolvent by the BoN board