Kganyago assures account holders that Ubank will remain operational

The governor announced on Monday that Ubank had been placed under curatorship.

South African Reserve Bank (Sarb) Governor Lesetja Kganyago. Picture: @SAReserveBank/Twitter

JOHANNESBURG - Reserve Bank Governor Lesetja Kganyago has moved to assure those with accounts at Ubank that it will remain operational, saying that possible investors are looking at the bank.

The governor announced on Monday that Ubank had been placed under curatorship.

Ubank is a financial services provider focussing on the gold and platinum mining communities.

Reserve Bank Governor Lesetja Kganyago said that it was up to the curator KPMG to manage the bank from here on.

"The curator is also required to recover and take possession of all the assets of Ubank. Furthermore, the Prudential Authority obliged to ensure that all payments, clearing and settlement obligations of Ubank will continue to be met," he said.

The bank does not have enough capital and there are concerns for the financial safety of clients.

But Stuart Theobald of Intellidex said that Ubank was not a reflection of the rest of the banking sector.

"Ubank is a fairly unique bank - small bank operating in a specific area particularly focused on mining and workers in mines," he said.

The curators will now be looking at securing investors.