The National Treasury has described US-based research firm Viceroy as reckless, after it released a report on Capitec Bank earlier this week.
Capitec Bank shares tumbled 20% before recovering most of the loss after Viceroy alleged that the bank is a loan shark masquerading as a microfinance provider.
In a statement, the Treasury says it is satisfied with the Reserve Bank’s assurance that Capitec is well capitalised, liquid, solvent, and meets all prudential requirements.
This means that the funds of depositors are safe.
The Treasury has requested that the Financial Services Board urgently consider whether it should initiate a market abuse investigation into the conduct of Viceroy, and to ensure that it is regulated appropriately.
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