Bank of Mozambique revokes banking license of Nosso Banco

14 November 2016

The Bank of Mozambique has decided to revoke the banking license granted to Nosso Banco, which led to its dissolution and liquidation, the central bank said in a statement on Friday in Maputo.

The bank’s financial situation had been characterized by a continuous degradation of the main prudential and profitability indicators, particularly weak capitalisation, an unsustainable economic and financial structure, as well as serious problems of liquidity and management, the statement added.

The central bank also reported that the restructuring plan, including its recapitalisation and change of administration and management structure, introduced in 2014, did not have the expected effects and added that after successive failures of this plan the bank demonstrated an inability to get out of its troubled economic and financial situation.

The bank, which was 77.2% owned by the National Social Security Institute (INSS) of Mozambique, had its headquarters, three branches and eight ATMs, all in Maputo.

The remaining shareholders of the bank were state power company EdM (16.13%), SPI – Gestão e Investimentos, SGPS of the governing Frelimo Party, with 4.09% and Alfred Kalisa, a Rwandan businessman and one of the founders of the bank, with 2.14%.

The Bank of Mozambique in October had to intervene in Moza Banco in order to guarantee the interests of depositors, “taking into account the solvency ratio was below zero,” according to the statement released at the time. (macauhub)