King Misuzulu kaZwelithini. Picture: Bongani Mbatha/ Independent Newspapers
Durban — King Misuzulu kaZwelithini has urged the KwaZulu-Natal government and Finance Minister to ensure that Ithala Bank’s licence is restored.
On Friday, the Financial Sector Conduct Authority (FSCA) suspended Ithala’s banking licence as it failed to meet financial soundness requirements.
In a statement issued by the body, it stated that solvency was a critical element for the viability of any financial services provider (FSP).
However, the king expressed his extreme dismay on being informed that the (FSCA) has suspended the banking licence.
In a statement issued by the office of the king, on Sunday, it says His Majesty is concerned that the suspension of the bank’s licence will have devastating consequences on the livelihood of thousands of his subjects who depend on the bank to conduct their business and social enterprises.
The king then directed his traditional prime minister Thulasizwe Buthelezi to reach out to the Minister of Finance and the Premier of KwaZulu-Natal for them to ensure that no effort is spared to reinstate the banking licence of the bank without delay.
The statement further stated that the king strongly believes that the services of the bank as the backbone of rural and township entrepreneurs in KwaZulu-Natal must not be disrupted.
“His Majesty views Ithala Bank as the enduring legacy of his erstwhile Prime Minister, Prince Mangosuthu Buthelezi -- a legacy that must be honoured and defended so that future generations can also benefit from Ithala Bank,” concludes the statement.
The FSCA said the suspension meant Ithala is prohibited from concluding any new business and is permitted to continue providing financial services for existing business.
Ithala turned to the Financial Services Tribunal for reconsideration of the FSCA’s decision and simultaneously applied for the interim suspension of the decision pending this, however, the tribunal dismissed the interim application on August 22.
A hearing date for the reconsideration application has not yet been determined.
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