ActionSA Warns of Ithala Bank’s Imminent Collapse as Deputy Finance Minister Confirms No Capital Injection
Alan Beesley
ActionSA Member of Parliament
ActionSA expresses concern that Ithala Bank faces imminent collapse following the Deputy Minister of Finance’s confirmation in the National Assembly this afternoon, stating that neither the KZN Government, as the shareholder, nor National Treasury are planning to inject any capital to ensure Ithala is adequately capitalised.
ActionSA posed a question to the Deputy Minister of Finance today, seeking clarity on the urgent matter that Ithala Bank requires a substantial capital injection from the KZN Provincial Government to continue operating and the worrying confirmation that this is not going happen now places the bank’s continued operation at serious risk.
ActionSA has consistently raised alarms about the devastating impact of Ithala’s potential collapse, which, if the situation remains unchanged, is inevitable, leaving Ithala’s clients and the communities dependent on the bank at perilous risk, with their deposits in jeopardy — a deeply concerning prospect, especially in light of the tragic lessons learned from the VBS scandal.
With the possibility of Ithala’s closure imminent, ActionSA believes it is imperative to protect depositors, avoiding another VBS disaster, and, importantly, to ensure that those relying on Ithala’s banking services are provided with alternatives and not simply forgotten.
ActionSA is incredibly concerned about the impact on Ithala’s clients and will continue engaging with stakeholders through our membership on the Standing Committee on Finance to ensure that the protection of customer deposits is prioritised and that we do not face another VBS-style collapse.
ActionSA Warns of Ithala Bank’s Imminent Collapse as Deputy Finance Minister Confirms No Capital Injection
ActionSA expresses concern that Ithala Bank faces imminent collapse following the Deputy Minister of Finance’s confirmation in the National Assembly this afternoon, stating that neither the KZN Government, as the shareholder, nor National Treasury are planning to inject any capital to ensure Ithala is adequately capitalised.
ActionSA posed a question to the Deputy Minister of Finance today, seeking clarity on the urgent matter that Ithala Bank requires a substantial capital injection from the KZN Provincial Government to continue operating and the worrying confirmation that this is not going happen now places the bank’s continued operation at serious risk.
ActionSA has consistently raised alarms about the devastating impact of Ithala’s potential collapse, which, if the situation remains unchanged, is inevitable, leaving Ithala’s clients and the communities dependent on the bank at perilous risk, with their deposits in jeopardy — a deeply concerning prospect, especially in light of the tragic lessons learned from the VBS scandal.
With the possibility of Ithala’s closure imminent, ActionSA believes it is imperative to protect depositors, avoiding another VBS disaster, and, importantly, to ensure that those relying on Ithala’s banking services are provided with alternatives and not simply forgotten.
ActionSA is incredibly concerned about the impact on Ithala’s clients and will continue engaging with stakeholders through our membership on the Standing Committee on Finance to ensure that the protection of customer deposits is prioritised and that we do not face another VBS-style collapse.