BDLive reports that Ubank, a small retail bank primarily focused on providing financial services for mine workers, will require R152m for recapitalisation within two years to keep its banking licence.  

This emerged at the National Union of Mineworkers’ (NUM’s) annual central committee meeting last week.  Ubank’s management has also indicated that about R800m would be needed for the bank to invest in upgrading its systems and information technology infrastructure.  There was an urgent requirement for the bank, previously known as Teba Bank, to diversify its revenue streams, NUM general secretary David Sipunzi indicated.  Ubank is owned by a trust managed jointly by the Chamber of Mines and NUM and at present has a balance sheet of R5bn.  In 2006, Cosatu resolved to ensure the bank became a broader workers’ bank, but little has come of this.

Read this report by Karl Gernetzky in full at BDLive

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