State-owned Ithala Bank’s future is uncertain after the Prudential Authority on Friday gave notice that the exemption notice to act as a bank get its house in order as regards regulatory concerns had now expired.
This after the regulator flagged regulatory concerns related to the bank’s client insurance protection and as Ithala has been facing an uphill battle to acquire a permanent banking licence.
“The Prudential Authority hereby gives notice of the Expiry on December 15, 2023 of the Exemption Notice ‘Designation by the Prudential Authority of certain activities of Ithala SOC Limited’, which was issued in terms of Government Notice Number 1169, as published in Government Gazette 47063 on July 22, 2022 and which designated that the business of Ithala SOC Limited shall not be deemed to constitute the business of a bank until December 15, 2023, subject to the conditions of the Exemption Notice,“ it said.
Ithala Bank aims to help create wealth for ordinary people.
Ithala provides access to financial services and insurance to marginalised people who continue to have limited access to these services from traditional players in the market.