[LISTEN] Should Capitec customers be worried about Viceroy's report?
Viceroy is not without their own axe to grind in this case, says Vestact MD Paul Theron.
JOHANNESBURG - Capitec customers need not panic over the report on Capitec's loan practices released by US-based research organisation Viceroy, which calls the bank a "loan shark masquerading as a community finance provider", according to Paul Theron, Managing Director of asset management firm Vestact.
According to the report, Capitec has been advising and approving loans to delinquent customers in order to repay existing loans.
"Viceroy research is a rather shadowy, low budget bunch of guys... They have borrowed Capitec stock and are hoping to profit from the share profit going down, so they are not without their own axe to grind in this case," Theron tells Radio 702 and Cape Talk.
"... I would also say to people who have deposits with Capitec that they should calm down, because sometimes in these cases, people start jumping around but remember the South African Reserve Bank stands behind all the major banks... I think Capitec is well-capitalised and that's also been echoed by Standard and Poor's who affirmed their rating this morning."
Listen to the audio above for more.