This from fin24.com:
Cape Town – The South African Reserve Bank (SARB) said on Tuesday that Capitec is solvent, well capitalised and has adequate liquidity.
Responding to a damning research report from Viceroy Group into Capitec, the SARB told Fin24 in an emailed response to questions that the bank meets all prudential requirements.
The SARB noted the 33-page report issued on Tuesday by the trio of short sellers and researchers of US-based Viceroy.
“As part of our mandate, we monitor the safety and soundness of all banks, including Capitec Bank. According to all the information available, Capitec is solvent, well capitalised and has adequate liquidity. The bank meets all prudential requirements,” said the SARB.
Viceroy Research in its report called on the SARB to immediately place Capitec under curatorship.
Based on South African household economic indicators and other macro factors, Viceroy believes the projected appetite of the market for microfinance is drastically overestimated.
Viceroy believes loopholes are being utilised to sustain unaffordable borrowing. This includes consolidating previous loans, restructuring or consolidation fees, initiation fees and service fees which, in the research group’s view, all hide “the true reality of a business struggling in a sector where historically, businesses have collapsed”.
Full story here: