LETTER: Capitec move is scary

Capitec recently sent clients a notification that the minimum balance in a standard Capitec savings account had been increased from R50 to R100.

According to published reports, Capitec has about 22-million account holders. So by increasing the minimum balance this seems an easy way for Capitec to gain access to more than R1bn.

Considering your report, which said Capitec has moved R507m into the stage 2 loan category, it does appear as if the bank has mitigated any potential loss by ensuring that its own clients will pay for it (“Capitec models possible hit of Agoa and US aid freeze to clients”, April 24).

It seems far too coincidental that the increase of the minimum balance requirement preceded the R507m adjustment by just a few weeks. My respectful opinion is that this all has a nasty smell about it. Or am I missing the point?

Perhaps this is no more than a normal banking practice, but it is somewhat scary if it is.

Paul O’Donoghue
Muizenberg

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