ActionSA Requests Urgent Finance Committee Hearing After Suspension of Ithala Bank Licence
Alan Beesley
ActionSA Member of Parliament
ActionSA notes the suspension of the Ithala Bank licence by The Financial Sector Conduct Authority, following the FSCA’s determination that the Bank does not meet the financial soundness requirements for a licence operator.
Ithala Bank has been providing access to financial services and insurance to poor and marginalised communities, particularly those based in KwaZulu-Natal, who have limited access to these services from traditional market players.
Importantly, following the salutary lessons learned from the collapse of VBS Bank, ActionSA concurs with the assessment that it is crucial to ensure there is no risk to the deposits of the poor and marginalised held by Ithala.
It is common cause that there is anxiety within Ithala’s customer base about the potential loss of their deposits. As such, ActionSA, represented on the Standing Committee on Finance, has requested that the Ithala matter be urgently brought before the Committee so that the issues can be discussed with the priority of protecting the interests of Ithala’s current customers.
ActionSA believes it is imperative that Ithala Bank meets the conditions for the lifting of its licence suspension as soon as possible, given the grave implications for its customers, many of whom are vulnerable.
ActionSA Requests Urgent Finance Committee Hearing After Suspension of Ithala Bank Licence
ActionSA notes the suspension of the Ithala Bank licence by The Financial Sector Conduct Authority, following the FSCA’s determination that the Bank does not meet the financial soundness requirements for a licence operator.
Ithala Bank has been providing access to financial services and insurance to poor and marginalised communities, particularly those based in KwaZulu-Natal, who have limited access to these services from traditional market players.
Importantly, following the salutary lessons learned from the collapse of VBS Bank, ActionSA concurs with the assessment that it is crucial to ensure there is no risk to the deposits of the poor and marginalised held by Ithala.
It is common cause that there is anxiety within Ithala’s customer base about the potential loss of their deposits. As such, ActionSA, represented on the Standing Committee on Finance, has requested that the Ithala matter be urgently brought before the Committee so that the issues can be discussed with the priority of protecting the interests of Ithala’s current customers.
ActionSA believes it is imperative that Ithala Bank meets the conditions for the lifting of its licence suspension as soon as possible, given the grave implications for its customers, many of whom are vulnerable.