The Bank of Zambia has stepped in to take control of Ecsponent Financial Services Limited, also known as MyBucks Zambia, over insolvency— the company has run out of money and can no longer pay its debts. This move, which happened on Sunday, February 16, 2025, was made according to the country’s Banking and Financial Services laws.
A resolution to seize MyBucks was approved by the Board of Directors of the Bank of Zambia on February 16, 2025. This action is intended to protect the interests of both depositors and creditors.
The goal is to avoid the institution’s “disorderly exit” which could collapse the nation’s financial system, if not well-managed.
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The statement, signed by Besnat Mwanza, Assistant Director Communications of Bank of Zambia reads, “To safeguard the interests of depositors and other creditors, and to prevent a disorderly exit from the institution, the BoZ Board of Directors passed a resolution to take possession of MyBucks on February 16, 2025, at 16:23 hours.”
The Bank of Zambia pledged to prepare a statement of affairs and take any other appropriate procedures in accordance with Section 73 of the BFSA throughout the possession period.
Why did the Bank of Zambia intervene?
The Bank of Zambia has the constitutional authority to oversee and regulate financial companies in the country, like banks and loan providers. One of its main jobs is to make sure that money in the country stays safe and that financial institutions are stable.
When a company like MyBucks Zambia can’t pay its bills and has no money left, the law allows the Bank of Zambia to step in and take control to stop the situation from getting worse. The Bank of Zambia is using its legal authority to protect people’s money and avoid a situation where a lot of people lose their savings.
The Bank of Zambia in this instance used Section 64 of the BFSA, which permits the central bank to seize a financial institution when it becomes insolvent.
The apex bank has demonstrated its dedication to preserving the stability of the financial system and safeguarding the interests of creditors and depositors through its action.
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Prevention of possible catastrophe
The acquisition of MyBucks Zambia represents a major shift in the financial industry of the nation.
The significance of efficient regulation and oversight in preserving financial stability is emphasised.
The Bank of Zambia’s steps are intended to avert a possible catastrophe and guarantee that the financial system as a whole won’t be negatively impacted by the institution’s demise.
Depositors and creditors are urged to maintain composure and assist the authorities as the Bank of Zambia works to resolve the issue. Protecting their interests and preserving the nation’s financial stability are the goals of the central bank’s operations.