The Reserve Bank has placed the U-Bank under curatorship to ensure its stability. Reserve Bank Governor Lesetja Kganyago has announced the appointment of KPMG as the curator with Zola Beseti as the representative.
Kganyago says the decision to place U-Bank under curatorship comes after it was found that it didn’t meet the minimum capital reserve required to protect its depots in case of a risk.
However, Kganyago has maintained that the bank has enough capital required to cover its deposits as required by the Prudential Authority.
He says the bank has four-point-seven-million accounts, mainly of mineworkers and their families. “We must emphasise that U-Bank will continue to operate during the period of curatorship and the curator will make decisions regarding the continued granting of loans and sound banking activities generally. Retail depositors represents 98 percent of U-Bank total liability. It is important to- emphasise that U-Bank will continue to be open for Business the bank remains highly liquid with a liquidity coverage ratio in excess of the regulatory requirements.”
VIDEO | South African Reserve Bank Governor, Lesetja Kganyago briefs the media: