Engineering News reports that the Minerals Council SA (MCSA), which was previously known as the Chamber of Mines, says it supports the action taken by the SA Reserve Bank‘s (SARB’s) Prudential Authority to place Ubank under curatorship.

It says that will clear the way to stabilise Ubank, protect depositors and enable the attraction of a long-term investor for the bank. The Teba Fund Trust is the 100% owner of Ubank. The MCSA and the National Union of Mineworkers (NUM) are the joint administrators of the fund, and each appoints three trustees to the fund. Neither party has any holding or financial interest in Ubank. The MCSA noted that over the past few years, the Prudential Authority had encouraged the trust to find a suitable long-term investor to shore up the tier-one capital of Ubank. It said several unsuccessful attempts were made by the trust and board to secure such an investor. “At the same time, a relatively narrow client base and the significant impact of Covid-19 on Ubank contributed to a deteriorating financial situation, with the capital adequacy ratio (CAR) falling below the required regulatory CAR,” the MCSA pointed out. It emphasised that Ubank continued to operate on a liquid basis, and had sufficient reserves to meet all liabilities.

• Read the full original of the report in the above regard at Engineering News

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