Reserve Bank sets up further inquiry into African Bank
4 September 2014
Following the placement of African Bank Limited (ABL) under curatorship, which came into effect on 10 August 2014, the South African Reserve Bank (SARB) has announced its intentions to further investigate the circumstances that gave rise to that position.
SARB stated that it recognises the importance of understanding what occurred and has therefore decided to institute a formal investigation in terms of the Banks Act.
Advocate Myburgh has been appointed as Commissioner and will, among other matters, investigate the business, trade, dealings, affairs, assets and liabilities of ABL.
The Commissioner is required to complete this investigation within a period of five months from the date of appointment and a written report will be required to be submitted within one month after the completion thereof.
Developments in respect of the National Credit Act Regulations Affordability Assessment will be particularly interesting in light of the African Bank issues and the recent compliance notices issued by the National Credit Regulator.