Ithala SOC Limited’s banking licence was revoked after it failed to meet specific bank requirements. File Picture
Ithala SOC Limited CEO, Dr Thulani Vilakazi, said the bank remains open and operational and will continue to service existing clients.
Last week, the Financial Sector Conduct Authority (FSCA) suspended the KwaZulu-Natal-based bank's licence after it failed to meet financial soundness requirements.
"In terms of transactional accounts, customers can still use their Ithala cards to pay for purchases or make withdrawals at stores and ATMs. In terms of loans, customers can and should still continue servicing their Ithala loan repayments.
“Insurance policies are not affected, as the insurance portfolio has been moved within Ithala’s parent organisation, Ithala Development and Finance Corporation (IDFC), which has a valid Financial Service Provider (FSP) licence," Vilakazi said.
He said customers can and should still pay their premiums and make claims which will be processed.
"The only thing that Ithala cannot do until the matter with the FSCA is resolved, is open new accounts for both existing and new clients," Vilakazi explained.
He said the FSCA's decision to decline Ithala an exemption and to ultimately suspend its FSP licence is premised on the basis that Ithala no longer enjoys an exemption under the Banks Act.
"This is despite Ithala holding deposits in its balance sheet and the presence of the repayment administrator who was appointed to safeguard the deposits while a solution is being devised relating to the legislative challenges presented to Ithala," Vilakazi said.
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