The Zimbabwe Stock Exchange yesterday suspended trading in shares of Interfin Financial Services, the holding company of beleaguered financial institution Interfin Bank Limited. IFS traded on the local bourse under the banner Interfin. The Reserve Bank of Zimbabwe on Monday placed Interfin Bank, a key subsidiary of IFS under the management of a curator for six months.
ZSE acting chief executive Mr Martin Matanda told New Ziana that following the placement of the bank under curatorship the ZSE Listings Committee met and decided to suspend trading in Interfin shares until further notice.
“The ZSE Listings Committee met this morning (Tuesday) and decided that the investing public did not have the correct information with regards to Interfin Financial Services,” he said.
“Trading in IFS shares has therefore been suspended.” IFS becomes the fifth suspended counter on the local bourse joining Barbican, Redstar, Steelnet and TZI. The firm listed on the ZSE in 2010 through a reverse takeover of CFX Financial Services to become the sixth financial counter on the bourse.
Other financial counters included ABCH, Barclays, CBZ, FBCH and ZBFH.
Explaining the placement of Interfin Bank under curatorship, the RBZ said it followed revelations that the financial institution was not in a safe financial position.The bank, placed under the care of Peter Bailey of KPMG Chartered Accountants, was also said to be under capitalised, had concentrated shareholding and was abusing corporate structures.
High levels of non-performing insider and related party exposures, chronic liquidity and income generation challenges, poor board and senior management oversight, as well as violation of banking laws and regulations were also discovered at Interfin Bank.
“The primary purpose of the curatorship is to protect depositors, preserve the assets of the Interfin Bank Limited and protect the stability of the financial system,” said the RBZ. - New Ziana