KZN govt to intervene in Ithala licence suspension
The KZN government says it will step in following the suspension of Ithala Bank's licence by the Financial Sector Conduct Authority.
The FSCA says the KZN state-owned bank does not meet financial soundness requirements.
It says the suspension was effective a month ago.
At a press conference in Durban on Monday afternoon, MEC for Economic Development Musa Zondi said the matter was of utmost urgency.
"Last week, Ithala’s leadership got the opportunity to present new developments to the Premier of KwaZulu-Natal and the [provincial] cabinet on its progress. Within the next week, the Premier and the cabinet will receive further updates from Ithala after which the Premier will announce the way forward."
READ: Suspension of iThala Bank ‘a blow to rural economy’ - AmaZulu King
Zondi says the entity has been critical to KZN's economy, particularly in rural areas.
"Despite the challenges that have arisen we are fully committed. We believe that a bank should be the catalyst for building and boosting the economy, creating wealth and transforming lives."
Ithala Bank is allowed to continue providing financial services only to existing clients.
In a statement, the bank has moved to assure customers that their money is safe, adding there Is no need for them to withdraw their funds.
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