'Proactive' SARB move will prevent Ubank from being another VBS or African Bank, say analysts.
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The SA Reserve Bank’s decision to place Ubank under curatorship before its capital adequacy problems get out of hand will protect consumers and ultimately prevent repeating what happened with African Bank or VBS, according to analysts.
On Monday SARB governor Lesetja Kganyago announced that the central bank’s Prudential Authority (PA) had placed the Ubank under curatorship. The capital adequacy ratio dipped to 3% - from 23% in 2020. This was below the minimum regulatory requirement the SARB set for it. Other South African banks have a capital adequacy rate of closer to 20%.
On Monday SARB governor Lesetja Kganyago announced that the central bank’s Prudential Authority (PA) had placed the Ubank under curatorship. The capital adequacy ratio dipped to 3% - from 23% in 2020. This was below the minimum regulatory requirement the SARB set for it. Other South African banks have a capital adequacy rate of closer to 20%.
