Capitec refutes Viceroy allegations

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Capitec bank has rubbished a report by Viceroy Research that sparked panic about its finances and fears of a run on the bank earlier on Tuesday.

Shares fell by 25 percent at one stage, but they closed only 3 percent in the red.

Capitec’s share price recovered after it was given a thumbs up by the Reserve Bank which said Capitec is solvent, well capitalised and has adequate liquidity.

Viceroy Research earlier exposed Steinhoff’s accounting irregularities and alleged inflating of its earnings.

Capitec offers unsecured loans mainly to low and middle income earners.

According to the report, Capitec may have to write down its loan book by 11 billion rand.

This is equivalent to 14 percent of the bank’s assets.

It describes Capitec as a loan shark which overstated its loan book.

Viceroy says the bank must be put under curatorship by the Reserve Bank.

Capitec has refuted these allegations, saying Viceroy’s research is flawed, and its attorneys have registered a formal complaint with the Financial Services Board.

Watch Capitec Bank media briefing below: