The Bank of Mozambique assured this Wednesday that the Mozambican financial system remains “stable and solid”, after the preventive suspension of Standard Bank in all activities involving the conversion of foreign currency in the foreign exchange market.
“The Bank of Mozambique also reports that foreign exchange operations are running normally and that the financial system in general remains stable and solid,” said a press release issued by the institution on Wednesday.
On June 23, the Mozambican central bank announced the suspension of Standard Bank from the Interbank Foreign Exchange Market and, the next day, the opening of three “contravention processes” against that banking institution and two of its employees.
“In order to safeguard the interests of Standard Bank’s customers, business continuity is being ensured by the remaining banks operating in the country, under the guidance and clarification of Standard Bank,” the statement said.
The decision by the Mozambican central bank follows the “findings identified during the on-site inspection underway,” the statement added, without further details about the causes of the suspension.
Data from the Bank of Mozambique published in April showed Standard Bank was third on the list of three banks of systemic importance in Mozambique, on a list led by Banco Comercial e de Investimentos (BCI) and in which Banco Internacional de Moçambique (Millennium Bim) is in second place.
In the ratio that measures the importance to the sector, labeled with the English acronym D-SIB, BCI tops the list with 278 points, followed by Millennium Bim with 257 and Standard Bank with 159.
