SA Reserve Bank vouches for Capitec
The SA Reserve Bank says information at its disposal indicates that Capitec Bank is in a good financial position.
“The SARB notes a report by a US-based fund manager. According to all the information available‚ Capitec is solvent‚ well capitalised and has adequate liquidity. The bank meets all prudential requirements‚” the Reserve Bank said on its Twitter account.
The reaction comes after Viceroy released a report on Tuesday morning describing Capitec Bank as a loan shark. Researchers further urged the SA Reserve Bank and Finance Minister Malusi Gigaba to place Capitec under curatorship.
In the report‚ Viceroy stated that it had legal documents showing that Capitec advised and approved loans to delinquent customers in order to repay existing loans. These documents also show Capitec engaging in reckless lending practices as defined by South Africa’s National Credit Act‚ the report said.
In its statement released to the markets‚ Capitec said it only received the Viceroy report on Tuesday at 10am‚ adding that the report “is filled with factual errors‚ material omissions in respect of legal proceedings against Capitec and opinions that are not supported by accurate information”.
Research company Viceroy released a report on Tuesday, January 29 2018, in which it stated that Capitec is a loan shark with massively understated defaults masquerading as a community microfinance...