Cavmont Bank Zambia says it is not being sold to Access Bank, but that the two banks are in talks over a possible merge.
Speaking in an interview with Money FM News, Cavmont Bank Zambia Head of Communications and Customer, Puta Chilunga said Access Bank is looking for a local partner and Cavmont Bank is available.
Ms. Chilunga noted that the merge is a positive step for the customers because it will encourage more capital and funding to borrow and a bigger footprint.
“Really it’s just about growth, Cavmont is not selling, Access are looking for a local partner and Cavmont is available, the two banks merging is better for our customers, because this will increase capital and funding to borrow,” she said.
She said she is not sure if they will be a name charge when the two banks merge owning to the fact that both banks have operating licenses, and Cavmont is a listed entity on the Lusaka Stock Exchange.
“We don’t really know that because both banks have operating licensees, and that is something to discuss with the regulator, at this point, I don’t think the conversation has gone very far and it would be premature for me to say anything along those lines,” she said.
And Ms Chilunga clarified that the decision by the Bank to merge with Access Bank does not mean that it is bankrupt, because it is still capitalized as it has capital at the Bank of Zambia (BoZ).
She added that the bank closed some of its branches last year due to lack of business activities.
“The reason for closing down those branches is that there was not much business there, we closed in Mpulungu, we closed our industrial branch because we have enough branches in Lusaka, we were going to close Mfumbwe but business opportunities came up there and we stayed open, we closed Mwense which was an agent, and this does not mean that Cavmont is bankrupt,” she explained.
Ms. Chilunga further said the challenges the banking firm is facing, are just like any other challenges faced by other banks, but that 80 percent of its lending goes to local businesses.