Harare- The Reserve Bank of Zimbabwe (RBZ) on Monday extended the Curatorship of Lion Microfinance Limited by a further three months ending 25 January 2020.
In July 2019 the central bank placed Lion Microfinance under Curatorship of the Deposit Protection Corporation for an initial 3 months period after it had determined that “the institution is not in a sound financial condition mainly due to critical under-capitalisation and weak corporate governance.”
“Notice is hereby given that the Curatorship of LION MICROFINANCE LIMITED has been extended by a further period of three months ending 25 January 2020,” the Central bank said in a statement.
“The Reserve Bank has similarly extended the appointment of the Curator, the Deposit Protection Corporation accordingly.”
Microfinance institutions (MFIs) operating in Zimbabwe are required to meet a minimum requirement of ZWL$5 million.
Although local micro-financiers have increased penetration and lending to various sectors of the economy, in part driven by their relatively easier reach to the poor and marginalised compared to commercial banks, the extension of Lion Microfinance Curatorship is one but a sign that the organisation continues struggling to meet the minimum regulation requirements.
Equity Axis News