UBANK, which has around 4.7 million accounts – mainly among mine workers and their families – has been placed under curatorship.
SA Reserve Bank governor Lesetja Kganyago says there are concerns about the bank’s capital adequacy, as well as about its weak corporate governance and lacking corporate internal controls.
KPMG South Africa has been appointed as the curator, with KPMG director Zola Beseti as the representative.
“KPMG South Africa will be responsible for Ubank with immediate effect,” Kganyago said.
Ubank remains open for business, remains highly liquid and will continue to grant loans, he stressed.
However, with a balance sheet of more than R5 billion, Ubank only has a capital adequacy rate of 3%, while it should be closer to 20%, Kganyago said. Retail depositors represent 98% of Ubank’s total liabilities. Fin24.com