Consultation on report received from curator of African Bank Ltd
On 10 August 2014 the former Governor of the Reserve Bank, Ms Gill Marcus, announced a proposed resolution package for African Bank Ltd. The intervention sought to maintain financial stability, minimise the cost to broader society and preserve creditor value in African Bank Ltd.
On 4 February 2016 the Curator of African Bank Ltd submitted a report to the Minister of Finance, in terms of Sections 54(1) read with 69(2C) of the Banks Act, 1990 (the Banks Act), requesting the Minister's consent to the proposed resolution plan for African Bank Ltd ("the Proposed Transaction").
The Minister is considering whether to grant consent to the Proposed Transaction in terms of Sections 54 and 69(2C) of the Banks Act ("the Proposed Decision") on the basis of the Curator’s report together with the criteria stipulated in the Banks Act, being whether the Proposed Transaction is reasonably likely to promote the maintenance of a stable banking sector and/or public confidence in the banking sector.
The Minister accordingly invites written submissions by affected parties on the Proposed Decision.
Background documentation is available from Mr Vukile Davidson at financial.policy@treasury.gov.za. Final submissions should be sent to the same address by Friday, 11 March 2016.
