On 16 May 2022 the Minister of Finance Enoch Godongwana, in consultation with the Prudential Authority (PA), placed Ubank Limited (Ubank) under curatorship with immediate effect.
This was done to help protect Ubank’s customers and the financial services sector while the bank finds a potential investor to restore its capital position to an acceptable level as required by the PA.
The Financial Sector Conduct Authority (FSCA) said on Thursday that it would like to remind Ubank customers that the bank remains open for business as usual.
This means that customers will continue to have access to their money and other services offered by the bank in the ordinary course of business.
“There is no need for customers to withdraw their money from the bank. Customers are further urged to continue making payments for their credit facilities as per agreements in place with the bank. The curator will keep customers informed of any important developments at the bank,” the FSCA said in a statement.
The FSCA also noted the important role played by Ubank in providing financial services to mine workers and their families in rural areas.
“We will continue to work closely with the PA and the curator to ensure that Ubank’s customers remain protected during the curatorship process.”
KPMG TO THE RESCUE
Audit firm KPMG South Africa has been roped in to clean up the struggling Ubank’s balance sheet as the bank’s capital resources are on the brink of drying up.
Minister Godongwana appointed KPMG as the curator, in the hopes that the firm can help get the bank back into a safe financial space.