Investigate Capitec allegations‚ says EFF
The Economic Freedom Fighters have called on the SA Reserve Bank to investigate allegations that Capitec Bank has engaged in reckless lending‚ as revealed in a report by research company Viceroy.
“The EFF notes the damning report by Viceroy on Capitec and its loan shark activities and allegations. The EFF‚ despite the assurances of the South African Reserve Bank (SARB)‚ believes there must be an inquiry into Capitec given the nature and seriousness of the allegation‚” the party said in an official statement on Thursday.
“We cannot allow another situation whereby people‚ mainly workers and poor people as they make the majority of customers for Capitec‚ are exposed to negligent and reckless banking behaviour. Only to respond when the situation has deteriorated beyond measure.”
The EFF calls come after Viceroy released its report on Tuesday morning‚ describing Capitec as a loan shark. The researchers urged the Reserve Bank and Finance Minister Malusi Gigaba to place Capitec under curatorship.
Viceroy stated that it had legal documents showing that Capitec had approved loans to delinquent customers in order to repay existing loans. These documents also show Capitec engaging in reckless lending practices as defined by South Africa’s National Credit Act‚ the report said.
Capitec described the report as “filled with factual errors” and “material omissions”.
The Reserve Bank noted the report but said that Capitec Bank is solvent‚ well capitalised and has adequate liquidity. The bank meets all prudential requirements‚ the Reserve Bank said.
Research company Viceroy released a report on Tuesday, January 29 2018, in which it stated that Capitec is a loan shark with massively understated defaults masquerading as a community microfinance...