The premier of KwaZulu-Natal (KZN), Thami Ntuli, has urged the provincial government and municipalities within the province to begin banking with Ithala Bank, effectively circumventing municipal legislation which directs local governments to bank only with a fully registered bank. 

Ithala operated as a bank under an exemption notice issued by the Prudential Authority, which lapsed in December 2023. However, it failed to obtain authorisation to establish a bank as it did not comply with the authority’s supervisory concerns and the requirement to restructure to comply with the Banks Act or the Mutual Banks Act...

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