|ZABG changes to Allied Bank|
|Tuesday, 18 December 2012 00:00|
Fanuel Kangondo Business Editor
was on the brink of collapse before the intervention by Trebor & Khays earlier this year.
ZABG Bank chairman, prominent lawyer Mr Farai Mutamangira, told Herald Business yesterday that the bank could not continue operating to market expectations under the old name.
“We realised that the current ZABG brand could not carry us and we have now gone out of our way to position ourselves to respond to the market expectations. The bank is now in a stronger position than before to negotiate more meaningful deals,” he said.
Mr Mutamangira said the RBZ gave the nod to the name change in line with the rebranding.
The merger of the three banks — Trust, Royal and Barbican — was proposed by the RBZ to stabilise the financial sector after they had run into problems.
Following the merger, the major shareholders embarked on a series of court actions challenging the move.
In 2006 the Supreme Court ruled that the sale of Royal and Trust Bank assets was null and void, against which the RBZ appealed.
Retired High Court judge Justice George Smith ruled that the transfer of assets into ZABG was done according to the law. But the shareholders pushed for the return of the assets in line with the Supreme Court ruling.
In 2010 ZABG demerged into Trust, Royal, Barbican and ZABG banks.
The bank was also under pressure to comply with the US$12,5 million minimum capital requirements set by the RBZ. Thresholds were later revised to US$100 million by June 2014, which the new ZABG board said was within reach.