MPs this week voiced significant concerns regarding the potential liquidation of Ithala Bank, an institution regarded as a crucial facilitator for socio-economic development in KwaZulu-Natal.
The debate, which was held in the National Council of Provinces(NCOP), highlighted fears that the bank closure could exacerbate the financial exclusion of disadvantaged communities.
Ithala Bank, which has long operated under regulatory exemptions, is facing possible liquidation following an application from the South African Reserve Bank’s (SARB) Prudential Authority, citing persistent failures to meet essential banking licensing requirements.
IFP MP and NCOP deputy chairperson Poobalan Govender said: “If we allow its (Ithala Bank) closure risk plunging many into deeper poverty and reversing hard work gains in socio-economic transformation and leaving millions of people without crucial financial assistance.”
“And we follow Mr. Mantashe’s (Minister of Finance) lament to assist the Financial Sector Conduct Authority (FSCA) due to failure to meet financial soundness or have a detrimental impact,” Wanda said.
He called on Ithala, the Prudential Authority and the FSCA to prioritise an out-of-court settlement.
“We recommend a phased approach to develop to allow Ithala to gradually meet necessary capital and regulatory requirements to ensure adequate time necessary capital and regularise its operation,” he said.
DA MP Sihlulele Dube said Ithala had played a significant role in supporting those excluded from traditional banking services.
“We support the existence of a strong state-owned development finance institution but without the honest.
We cannot support continued misuse of taxpayers money on entities that are poorly managed, politically compromised and financially unstable,” he said.
“We were not surprised by these outcomes. The banking sector is dominated by white people who control 90% of the banking assets” he said, adding that black-owned banks were under attack from the SA Reserve Service wanting to eliminate bank ownership not aligned to “Stellenbosch interests”.
Ceza accused the government of National Unity (GNU) of tying its...
The debate, which was held in the National Council of Provinces(NCOP), highlighted fears that the bank closure could exacerbate the financial exclusion of disadvantaged communities.
Ithala Bank, which has long operated under regulatory exemptions, is facing possible liquidation following an application from the South African Reserve Bank’s (SARB) Prudential Authority, citing persistent failures to meet essential banking licensing requirements.
IFP MP and NCOP deputy chairperson Poobalan Govender said: “If we allow its (Ithala Bank) closure risk plunging many into deeper poverty and reversing hard work gains in socio-economic transformation and leaving millions of people without crucial financial assistance.”
“And we follow Mr. Mantashe’s (Minister of Finance) lament to assist the Financial Sector Conduct Authority (FSCA) due to failure to meet financial soundness or have a detrimental impact,” Wanda said.
He called on Ithala, the Prudential Authority and the FSCA to prioritise an out-of-court settlement.
“We recommend a phased approach to develop to allow Ithala to gradually meet necessary capital and regulatory requirements to ensure adequate time necessary capital and regularise its operation,” he said.
DA MP Sihlulele Dube said Ithala had played a significant role in supporting those excluded from traditional banking services.
“We support the existence of a strong state-owned development finance institution but without the honest.
We cannot support continued misuse of taxpayers money on entities that are poorly managed, politically compromised and financially unstable,” he said.
“We were not surprised by these outcomes. The banking sector is dominated by white people who control 90% of the banking assets” he said, adding that black-owned banks were under attack from the SA Reserve Service wanting to eliminate bank ownership not aligned to “Stellenbosch interests”.
Ceza accused the government of National Unity (GNU) of tying its...
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The Mercury (Digital) - 1 Issue, March 28, 2025