Reserve Bank defends Capitec amid loan book report

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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.