Shortseller Viceroy Research has insisted the Reserve Bank should not rely on Capitec’s financial statements and should place it into curatorship. On Monday, the shortseller released its long-awaited statement in response to the Reserve Bank’s statement of support for Capitec in which the Bank assured the market that Capitec was "solvent, well capitalised and had adequate liquidity". The Reserve Bank made this statement after Viceroy claimed last week that Capitec was understating losses and on the brink of insolvency. "We understand that the [Reserve Bank] has not yet performed an adequate regulatory inspection of Capitec and expect they will do so in due course. "For the moment Viceroy will respond to [the Reserve Bank], limiting themselves to information contained in the most recent Capitec annual report," Viceroy said. But sources in the banking sector said the Reserve Bank’s bank supervision department did not rely on annual reports or results. In terms of the Banks Act, all re...

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