BUILDING SOCIETY BEING CONVERTED INTO A BANK

LOBAMBA – The conversion of Eswatini Building Society (EBS) into a bank lies with stakeholders.

This follows a report of the ministry of finance portfolio committee on the Building Societies Amendment Bill, 2019, Bill No. 12. The portfolio committee was asked when the conversion would take place. Responding to the question, the committee mentioned that after the promulgation of the Bill into an Act, EBS will call an annual general meeting where all stakeholders will be informed about the conversion and it will only be upon members to agree or disagree.

Further, it was questioned whether the conversion of EBS into a bank would not prejudice the banking sector. The response was that there was no way this initiative could negate the banking sector. Instead, it was highlighted that this would assist the bank get loans at a more favourable rate and subsequently offer more competitive products to its customers. It was stated that in most jurisdictions, building societies had been phased out.

Assume

Moreover, a query was posed that after the conversion of the financial institution, who would assume the directorship. It was also asked what would happen to the employees. The response was that there would not be many changes as it was not like the business was being sold. It was cited that this would be a conversion and that the successor company would still have the same directors. It was added that the fact of the matter was that Building Society was where it was today through the effort of its employees. For this reason, there was no way the society could do something that would impact negatively on its employees. It was rather highlighted that there were prospects of good opportunities as this would bring growth to the bank.   

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