South Africa: African Bank reopens

Apr 06, 2016

The financial institution was placed under curatorship for over a year.

South African financial institution African Bank, which was placed under curatorship in August 10th, 2014, was relaunched on Monday, April 4th.

It will operate under the same name, with equity of 10 billion rand (€585 million) and a cash position of about 24 billion rand, the bank said in a statement seen by Xinhua.

"About two-thirds of the bank’s issued debt is today listed on the Johannesburg Stock Exchange Ltd, the London Stock Exchange and the Swiss Securities Exchange. The remaining third will be held in the form of unlisted corporate bilateral deposits,” said African Bank.

It will offer financial products and services such as financial advice, moving away from its previous business model of unsecured lending.

The bank was placed under curatorship by the National Credit Regulator (NCR) in August 2014 after it was found guilty of reckless lending in 25 of its branches across the country.ADNFCR-2976-ID-801816022-ADNFCR