Reserve Bank backs Capitec again in Viceroy allegations
The central bank rubbished the allegations in its presentation to MPs, and Capitec CEO Gerrie Fourie said results of a full audit of the allegations will soon be released
The Reserve Bank has restated its belief that the key allegations made against Capitec in the report by short-seller Viceroy are not correct. In a presentation to Parliament’s finance committee, Reserve Bank deputy governor and registrar of banks Kuben Naidoo said Capitec did not use rescheduled loans to hide nonpayment and to boost new lending, as alleged. The bank’s provisioning model met legal requirements. The bank’s capital adequacy ratio of 34% was 2.5 times what a normal bank had. "The bank is very well capitalised relative to other banks," Naidoo said. Its liquidity coverage ratio of well over 1,000% compared with the required 100%. "Capitec is well regulated and has adequate capital and adequate liquidity," Naidoo said. Naidoo said the Reserve Bank was continuing to monitor the situation as part of its ongoing supervision. Capitec has also rejected the Viceroy allegations that it fabricated new loans and collections; approved loans to delinquent customers in order to repay ...
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