Ubank, which has around 4.7 million accounts - mainly among mineworkers and their families, has been placed under curatorship. | Fin24
SA Reserve Bank governor Lesetja Kganyago says there are concerns about the bank’s capital adequacy, as well as about its weak corporate governance and lacking corporate internal controls.
KPMG South Africa has been appointed as the curator, with KPMG director Zola Beseti as the representative.Ubank remains open for business, remains highly liquid and will continue to grant loans, he stressed. However, with a balance sheet of more than R5 billion, Ubank only has a capital adequacy rate of 3%, while it should be closer to 20%, Kganyago said. Retail depositors represent 98% of Ubank’s total liabilities.
Ubank – previously known as Teba Bank – was granted a banking licence in 2000, and grew out of Teba Cash Financial Services, which had been providing financial services to mineworkers since 1975. Ownership in the bank remains in a trust managed by trustees elected by the National Union of Mineworkers and the Minerals Council of SA.