JOHANNESBURG - US based Viceroy Research, who released a damning report about Capitec Bank last week, has hit out the South African Reserve Bank for "vouching" for Capitec Bank.
Viceroy said in a statement, "The South African Reserve Bank has a responsibility to determine whether the information provided to them – and on which they base their regulatory decisions is accurate. We do not think it is. The Sarb has, at this point, a responsibility to perform a full regulatory inspection of Capitec. Viceroy remains firm in its belief that this will result in SARB placing Capitec into curatorship."
"Viceroy will shortly respond to Capitec’s press release in relation to our report," the statement further said,
Viceroy Research had accused Capitec of underhanded business practices and called on Finance Minister Malusi Gigaba and the SA Reserve Bank to immediately place it into curatorship, saying it’s a matter of time before the JSE-listed bank goes bust.
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In a report it released last Tuesday titled Capitec: A wolf in sheep’s clothing, the company says based on its research and due diligence, it believes the bank is a loan shark with “massively understated defaults masquerading as a community microfinance provider”.
- BUSINESS REPORT ONLINE