BUSINESS REPORTER
Time Bank reopened to the public on October 27 offering mortgage loans but will not be taking deposits, 18 years after the institution was closed by authorities.
In a phased approach, the bank will introduce new products such as exporters loans (including first time exporters), corporate loans, factoring of book debts and discounting of medium-term bills and promissory notes with effect from December 1, the bank said yesterday.
It will also offer discounting of exporters’ receivables and consumer loans from December 1 and in addition to the introduction of four services—portfolio management, advisory, financial agency and consultancy.
Last month, the Reserve Bank of Zimbabwe (RBZ) gave Time Bank the greenlight to reopen after a rigorous pre-opening inspection marking the returns of Zimbabwe’s first locally owned commercial bank.
“Having regard to the institution’s risk management structures and processes, level of capitalisation, corporate governance arrangements, its business plan and the Banking Act, Time Bank has been authorised to conduct limited banking activities and shall not be taking deposits from the public,” RBZ said.
Founded by Chris Tande, Time Bank began operations in 1997.
Other locals owned merchant banks and discount houses were to follow years later.
But the bank was closed in 2004 by the central bank. Time Bank disputed the reasons for its closure and cancellation of its licence and was the first bank to take RBZ to the courts.
The protracted legal battle unearthed that the bank was owed US$5m by RBZ, which created financial problems for the bank.
Then governor Leonard Tsumba agreed to refund the money but his term of office ended before the funds could be refunded.
His predecessor Gideon Gono was accused of having reneged in repaying the bank, which forced Time Bank to approach the courts.
RBZ responded by putting the bank under a curator in 2004 and cancelled the licence two years later.
The courts restored the licence in 2009 but the bank could not operate, as RBZ could not do a hand over of the assets, documents and affairs of Time Bank in the normal way at the end of curatorship, from the former curator to the bank’s directors.
Another legal battle ensued.
However, while the dispute was raging on, Time Bank paid out all its known depositors and employees their full amounts in 2006.
RBZ governor John Mangudya resolved the dispute in 2015 when the central bank and Time Bank negotiated and entered into a settlement agreement under which RBZ agreed to refund the US$5m, which had been taken from the institution before it was closed.
