South African Reserve Financial institution Locations Ubank Beneath Curatorship

Ubank, a South African financial institution that primarily targets blue-collar employees and people within the mining sector, has been positioned below curatorship by the South African Reserve Financial institution.

This comes after considerations concerning the financial institution’s capital adequacy, weak company governance, in addition to lack of company inside controls.

KPMG South Africa has been assigned because the curator, with KPMG director Zola Beseti because the consultant, in response to News24. Which means that KPMG will now oversee and handle Ubank’s enterprise facet of issues. Nevertheless, possession within the financial institution stays in a belief managed by trustees elected by the Nationwide Union of Mine Staff (NUM) and the Minerals Council of SA.

“KPMG South Africa will likely be answerable for Ubank with instant impact,” SA Reserve Financial institution governor Lesetja Kganyago mentioned.

Kganyago emphasised that the financial institution will stay open for enterprise regardless of this. He mentioned that Ubank solely has a capital adequacy fee of three%, whereas it ought to be nearer to twenty%. Retail depositors characterize 98% of Ubank’s complete liabilities.

Ubank was beforehand referred to as Teba financial institution and it was granted a banking licence in 2000. It grew out of Teba Money Monetary Companies, which had been offering monetary companies to mineworkers since 1975.

NUM has expressed that’s it “extremely shocked and shocked” by the announcement that the financial institution is being put below curatorship.

“This occurred regardless of the Ubank’s board dedication [on Sunday] evening that it’ll increase the required R800 million to avoid wasting the financial institution from being positioned below curatorship,” the union mentioned in an announcement.

“The Ubank board managed to boost the required cash and the NUM is shocked by this newest growth,” it mentioned.

By Zintle Nkohla 

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