CENTRAL BANK SAYS SOUTH AFRICAN LENDER CAPITEC SOLVENT, MEETS ALL PRUDENTIAL REQUIREMENTS

PRETORIA– The South African Reserve Bank (SARB) says it has taken note of a report on the South African bank, Capitec Bank Limited, by a United State–based company, Viceroy Research, which states that the bank is operating as a loan shark.

Based on our research and due diligence, we believe that Capitec is a loan shark with massively understated defaults masquerading as a community microfinance provider, the report from Viceroy says.

Futhermore, the report called on the SARB and the Finance Minister to place Capitec under curatorship.

SARB said in a statement here Tuesday that as part of its mandate, it monitored the safety and soundness of all banks, including Capitec Bank Limited (Capitec).

According to all the information available, Capitec is solvent, well-capitalised and has adequate liquidity. The bank meets all prudential requirements, the central bank said.

Source: NAM NEWS NETWORK