The South African Reserve Bank has defended Capitec Holdings, saying it’s solvent, well capitalised and has adequate liquidity.
The Reserve Bank was responding to a research note by United States based fund manager Viceroy Research describing Capitec as a loan shark masquerading as a microfinance provider.
Viceroy suggests that Capitec overstates its financial assets and income.
Its comments caused Capitec’s shares to tumble by 20% before recovering most of the loss. The Reserve Bank says it monitors the safety and soundness of all banks and that Capitec Bank meets all prudential requirements.
SARB on Capitec from SABC News