Africa-Press – Namibia. Trustco Group Holdings and its subsidiary Trustco Bank Namibia have filed a case in the High Court in a bid to review several directives and decisions issued by the Bank of Namibia.
The case was filed in the Windhoek High Court on Friday last week, Trustco announced on Monday.
Reacting to the announcement, Bank of Namibia spokesperson Kazembire Zemburuka said in a statement on Monday that the central bank would “vigorously defend” its regulatory actions.
“The financial system remains stable and sound due to the effective regulatory and supervisory framework in place which fosters a world-class financial system,” Zemburuka stated.
In its statement, Trustco claimed that during “two years of correspondence and threats” between Trustco Bank, Trustco Group Holdings and the Bank of Namibia, the central bank has denied Trustco the opportunity for its bank to enter full commercial banking operations, even after the group offered to capitalise the bank’s balance sheet by a further N$1 billion.
Trustco claims the Bank of Namibia’s directives and opinions were unconstitutional.
In the case that they lodged, Trustco Bank and the Trustco group are also claiming that sections of the Banking Institutions Act of 1998 are unconstitutional, as they violate the constitutional prohibition of unfair discrimination and Trustco Bank’s right to carry on its business.
Trustco group managing director Quinton van Rooyen says article 101 of the Constitution compelled the parliament to take into consideration economic growth when it enacted the Banking Institutions Act.
“Not once, not even a single time, did parliament use the concept of economic growth in any of these acts,” according to Van Rooyen.
“In fact, the long title of the Banking Institutions Act emphasises only ‘control, supervision and regulations’. The ‘developmental mindset’ is detrimental to economic growth as well as wealth creation for all Namibians,” he said in Trustco’s statement.
The case was filed in the Windhoek High Court on Friday last week, Trustco announced on Monday.
Reacting to the announcement, Bank of Namibia spokesperson Kazembire Zemburuka said in a statement on Monday that the central bank would “vigorously defend” its regulatory actions.
“The financial system remains stable and sound due to the effective regulatory and supervisory framework in place which fosters a world-class financial system,” Zemburuka stated.
In its statement, Trustco claimed that during “two years of correspondence and threats” between Trustco Bank, Trustco Group Holdings and the Bank of Namibia, the central bank has denied Trustco the opportunity for its bank to enter full commercial banking operations, even after the group offered to capitalise the bank’s balance sheet by a further N$1 billion.
Trustco claims the Bank of Namibia’s directives and opinions were unconstitutional.
In the case that they lodged, Trustco Bank and the Trustco group are also claiming that sections of the Banking Institutions Act of 1998 are unconstitutional, as they violate the constitutional prohibition of unfair discrimination and Trustco Bank’s right to carry on its business.
Trustco group managing director Quinton van Rooyen says article 101 of the Constitution compelled the parliament to take into consideration economic growth when it enacted the Banking Institutions Act.
“Not once, not even a single time, did parliament use the concept of economic growth in any of these acts,” according to Van Rooyen.
“In fact, the long title of the Banking Institutions Act emphasises only ‘control, supervision and regulations’. The ‘developmental mindset’ is detrimental to economic growth as well as wealth creation for all Namibians,” he said in Trustco’s statement.
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