Supervised Finance Bank Zambia Is Operating Normally, Central Bank Says

By Antony Mukwita (bloomberg)

Finance Bank Zambia Ltd., the country’s biggest privately owned lender, is operating normally and customers shouldn’t be concerned about reports of higher than normal withdrawals, the Bank of Zambia said.

“There is absolutely no cause for alarm regarding a run,” Kanguya Mayondi, spokesman for the Lusaka-based central bank, said by phone today. Bank of Zambia officials are watching all 39 branches and normal banking occurred on Dec. 11 and yesterday, he said.

Finance Bank, partly owned by Credit Suisse Group AG, experienced high withdrawals by depositors concerned the bank will close, the Post reported, citing unidentified Finance Bank officials. FirstRand Ltd. of South Africa has been managing Finance Bank since Dec. 11 after the central bank accused the Zambian bank of breaching financial laws.

The central bank hasn’t imposed limits on withdrawals to “continue instilling confidence,” Mayondi said.

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