Suspension of iThala Bank ‘a blow to rural economy’ - AmaZulu King
AmaZulu King Misuzulu KaZwelithini says the suspension of iThala Bank’s licence will be a blow to thousands of people in KZN and their livelihoods.
The Financial Sector Conduct Authority says the state-owned bank had been under supervision as it had failed to meet financial soundness requirements.
The FSCA says solvency is a vital component for any financial services provider to work successfully. The authority says the suspension was effective from 26 July and will remain in effect until the bank meets the conditions for it to be lifted.
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Last month, the bank filed an application to the Financial Service Tribunal for the FSCA's decision to be reconsidered.
Ithala also asked the Tribunal to suspend the regulator's decision pending the outcome of the reconsideration application – but this request was dismissed last week.
A hearing date for the reconsideration application before the Tribunal has not yet been determined. The bank will be allowed to continue providing financial services to existing businesses, but not new ones.
Traditional Prime Minister to the Zulu Nation Thulasizwe Buthelezi says King Misuzulu has asked the provincial government to intervene.
"His Majesty hopes that all efforts will be pursued by the Minister of Finance and the Premier of KZN to reinstate the licence of iThala, as it is the backbone of the rural economy in the province and sustains thousands of businesses in rural areas and townships."
