Finance Minister Enoch Godongwana has placed the Ditsobotla Primary Savings and Credit Cooperative Bank Limited DCB in resolution, effective August 1. This follows the Reserve Banks recommended intervention to protect depositors interests.
The Reserve Bank says the DCB has failed to meet regulatory requirements for an extended period, was operating at a loss, and could not fulfil its financial obligations.
In addition, the banks governance, internal controls, systems and risk management practices have proven to be inadequate.
Communications Manager at the Reserve Bank Mahlatse Mahlase elaborates, Following the determination made by the Minister of Finance, the South African Reserve Bank has taken action to protect depositors, by placing the Ditsobotla Primary Savings and Credit Cooperative Bank into resolution. This step follows Ditsobotlas continued failure to meet regulatory requirements, ongoing financial losses, and serious weaknesses in governance and risk management. All member accounts are temporarily frozen to ensure the resolution process and to safeguard depositors' money.
