Regulatory Alerts2012-03-02
Troubled and Insolvent Banks Policy (June 2011)
The Reserve Bank of Zimbabwe establishes this policy to provide a structured framework for identifying, assessing, and resolving weak or insolvent banking institutions. It requires supervisors to apply risk-based supervision and CAMELS ratings for early detection of liquidity or solvency impairments, deploying proportionate corrective measures like warnings, penalties, and curator appointments. The policy outlines flexible resolution pathways including mergers, purchase-and-assumption transactions, and liquidation to preserve asset value, contain systemic risk, and minimize resolution costs.
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