Harare, (New Ziana) – The Reserve Bank of Zimbabwe (RBZ) has cancelled the oerating licence of Lion Microfinance Limited, trading as Lion Finance Zimbabwe, after determining that the company was not longer in a sound financial condition.
In a statement, RBZ’s registrar of micro finance institutions, Philip Madamombe said the cancellation, issued in terms of section 13 of the Microfinance Act [Chapter 24:30], takes effect from the date of publication of the notice.
“Notice is hereby given, in terms of section 13 of the Microfinance Act [Chapter 24:30], that the Registrar of Microfinance Institutions has cancelled the registration of LION MICROFINANCE LIMITED t/a LION FINANCE ZIMBABWE (Lion Microfinance) as a deposit-taking microfinance institution with effect from the date of publication of this notice,” said Madamombe.
He said, Lion Microfinance failed to meet several key regulatory requirements expected of a deposit-taking microfinance institution.
Chief among the concerns was the company’s failure to maintain the prescribed minimum capital levels.
Regulators also noted that despite ongoing supervision, the institution did not implement the necessary remedial measures to correct deficiencies that had been repeatedly flagged.
Further, the Registrar established that Lion Microfinance had not been conducting its operations in line with sound administrative, accounting and risk-management practices, as mandated under the Microfinance Act.
“In the circumstances, the maintenance of registration of Lion Microfinance Limited as a deposit-taking microfinance institution is undesirable. Accordingly, the Registrar has cancelled the institution’s licence in terms of section 13 of the Microfinance Act.
“Members of the public are accordingly advised not to undertake any microfinance business with the institution.
These failings, taken together, rendered the continued registration of the institution “undesirable,” leading to the revocation of its licence,” said Madamombe.
The public has been advised not to undertake any microfinance business with Lion Microfinance following the cancellation.
Authorities emphasised that the move is intended to protect depositors and preserve the integrity of the financial sector.
New Ziana
