CENTRAL BANK INSPECTION TO DETERMINE FARMERS BANK FATE

MBABANE – An on-site inspection report expected to be compiled by the Central Bank of Eswatini (CBE) will determine the fate of the Farmers Bank.

The commencing of operations for the Farmers Bank has, for more than three years, been delayed, as it has been argued that this was due to that it had still not yet complied with certain procedures, as per the provisions of the Financial Institutions Act, 2005. Recently, Members of Parliament (MPs) sought answers from the Ministry of Finance on the status of the bank and what was currently being done. In a response provided by the Ministry of Finance, the Farmers Bank remains a licensed bank under the aforementioned Act. According to the ministry, the CBE last reviewed the Farmers Bank’s licence in September 2023, for a one-year period.

The ministry said the bank is, however, considered a ‘bank in organisation’ since it had not commenced operations or opened doors to the public. Also mentioned was that the CBE met the Farmers Bank on a monthly basis to discuss progress, and that it recently conducted an on-site inspection as part of the requirements before commencing operations. “The CBE is in the process of finalising the on-site inspection report that was meant to determine the readiness of Farmers Bank to commence operations,” the ministry said. The Farmers Bank is the one that reportedly invested over E100 million in the country to focus on water and food security, after being granted a licence in 2018, which was however, revoked.

contributor

With its plan being to invest in agriculture, one sector which remains a major contributor to the country’s gross domestic product (GDP), many were of the belief that hosting such a bank was ideal for the Kingdom of Eswatini. In some countries in the African continent, there is what is known as agriculture banks, which have played a role in the provision of agricultural credit facilities to support all agricultural value chain activities, provide non-agricultural micro credit, savings mobilisation and capacity development. Since last year, the Farmers Bank has been running notices detailing its pricing guide. The guide includes prices for retail banking, corporate and business banking, withdrawals on automated teller machines (ATMs), payments and transfers plus card fees. Also included in the guide are penalty fees, prices for value-added services, deposits and point of sale fees among others.

The release of the pricing guide has aroused excitement among some emaSwati, who are believed to be looking forward to the services to be offered by the bank. Around July last year, the bank’s premises gave an indication that it was ready to welcome its clients. Consultants were welcoming visitors who were heard enquiring about when the loans that will be made available. The visitors also enquired about the significance of the published pricing guide and the exact date of opening. It was gathered that the pricing guide was published to give interested clients an idea of the services to be offered, so that when the bank opens its doors, they already have a clue. Also gathered during the visit was that the loans will only be available six months after the official opening. The date, it was gathered, would be announced officially once all logistics have been sorted.

confidentiality

While the Board Chairperson, Prince Nhlonipho had said that they expected that doors would open in August last year, if all went well, the CBE at the time said it was precluded by existing confidentiality considerations in its regulatory and supervisory relationship with Farmers Bank, including the licensing terms and the regulated entity’s operations. Consequently, the CBE said, it was not able to provide a detailed update on the progress made by Farmers Bank toward opening its doors to the public. This publication had sought to ascertain if the CBE, in particular the Finance Regulation Department, was now satisfied with the logistics and preparedness for the Farmers Bank to start operating. Before that, it had been stated that the CBE was waiting for the Farmers Bank to fully comply with the licensing conditions, which include safeguarding the deposits taken from members, among others.

Meanwhile, as the wait continues, the website of the Farmers Bank has provided various career opportunities. The opportunities listed include wealth management teller, information technology officer, systems administrator, network administrator and top coding experts. Under the top coding experts, it is reflected that these are coding or auxiliary positions, which include coding expert, mobile application developer, IOS developer, web developer, machine learning engineer, software architect, cyber security engineer, data centre development technician, fibre optic installer or technician and mobile engineers.

compliance

As if that is not enough, the website also reflects that there are executive positions, which include compliance officer, accounts officer, commercial bank head of credit, head if internal audit, settlement officer, treasury dealer and forensic financial economist. There is also a career opportunity for a marketing and communications officer and another for administration officer. For the Board, the website reflects that there is an opportunity for a non-executive director.

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