Trust Banking Corporation
| Private | |
| Industry | Financial Services |
| Headquarters | Harare, Zimbabwe |
|
Key people
|
William Nyemba Group Chief Executive Nyevero Panyika Hlupo managing director |
| Products | Loans, savings, checking, investments, debit cards, credit cards, mortgages |
| Revenue |
 Aftertax:US$3.6 million (2011) |
| Total assets | US$38.5 million (2011) |
| Website | Homepage |
Trust Banking Corporation (TBC), commonly referred to as Trust Bank, is a commercial bank in Zimbabwe. It is one of the commercial banks in the country, licensed by the Reserve Bank of Zimbabwe, the national banking regulator.
Trust Bank is a small financial services provider in Zimbabwe. As of December 2011[update], the bank's total asset valuation was reported as US$38.5 million, with shareholder's equity of $14.8 million.
The bank was founded in 1996 as Trust Merchant Bank. It transformed its banking licence to commercial banking licence in 2000, paving the way for its transition to Trust Banking Corporation. The bank grew rapidly, and by 2003, it had become the largest bank in Zimbabwe by balance sheet size. However, its growth came with several problems. As the Zimbabwean economy deteriorated, managers of the bank started in engaging in non-core activities.
In 2004, it was closed down by the Reserve Bank of Zimbabwe (RBZ), the national banking regulator. The assets of the bank were merged with those of Barbican Bank and Royal Bank Zimbabwe, both of which had also been shut down by RBZ, to form Zimbabwe Allied Banking Group (ZABG). The major reason was that the bank was illiquid and its managers had been irresponsible in managing depositors's funds. Prior to this corrective action, Trust has suffered a ZW$7 billion fraud committed by its own staff. This was attributed to weak controls and risk management systems. This worsened its liquidity position, which had hitherto started to deteriorate.
In December 2003, banks such as Standard Chartered Zimbabwe and Stanbic Bank Zimbabwe began rejecting to settle Trust Bank cheques because of its precarious liquidity position. It was kicked out of the central clearing system several times. Following these incidences, Gideon Gono, the RBZ governor, demanded the resignation of William Nyemba (the then CEO), Nyevero Hlupo (who was then the Finance Director) and Chris Goromonzi (who was an executive director). This was a condition for the bank to get liquidity support from the RBZ. A new managing director, Philip Magwada was hired to manage the bank. He was instrumental in getting Trust Bank into ZABG.
...
Wikipedia