The Reserve Bank of Zimbabwe (RBZ) on Thursday cancelled Allied Bank Limited’s licence after the financial institution voluntarily surrendered it.
In a statement, the RBZ said the banking institution is no longer in safe and sound condition as it is grossly undercapitalised and is facing chronic liquidity challenges.
The development means the central bank will apply for liquidation of the Obert Mpofu owned Allied Bank Limited.
The central bank said the decision is considered to be in the best interests of the banking institution, its depositors and creditors.
The cancellation of Allied Bank’s licence comes at a time other financial institutions have faced similar challenges leaving depositors stranded.
Analysts have attributed the collapse of some of the financial institutions to gross mismanagement and weak corporate governance structures.