Ubank placed under curatorship - SARB
Ubank has been placed under curatorship.
Reserve Bank Governor Lesetja Kganyago says the decision was taken after considering the serious issues faced by the bank, which is used mostly by mineworkers.
"Given that Ubank is unlikely to immediately meet its obligations as required by the Banks Act and the regulations relating to Banks, the Minister of Finance, in consultation with the Prudential Authority, has decided to place Ubank under curatorship with immediate effect.
"This is being done to proactively mitigate the adverse consequences on Ubank's depositors and to preserve the stability of the South African banking and financial services sector as a whole.
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Kganyago says the bank will continue to operate.
KPMG South Africa has been appointed as the curator.
"The curatorship provides the legal framework within which the necessary initiatives can take place to enable an orderly resolution.
"The Minister of Finance has appointed KPMG South Africa as the curator, with Mr Zola Beseti as the representative. KPMG South Africa will be responsible for Ubank with immediate effect, and with the full authority, the law confers on the curator.
"Mr Zola Beseti is a Director at KPMG and is based in Johannesburg. He is a member of KPMG’s Policy Board."
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