Edtea MEC says closure of Ithala Bank would severely impact KZN's most vulnerable residents.
MEC for Economic Development, Tourism and Environmental Affairs (Edtea) Musa Zondi has emphasised the need for regulatory certainty to clarify the position of entities like Ithala SOC Limited.
Zondi stated that the current challenges faced by the bank starkly contrast with the promises made by the country's parliament. He said, 'Most of the issues confronting this institution stem from its position in a regulatory gap—a gap that parliament can help close. The current version of the Financial Matters Amendment Act of 2019 excludes provincial entities from being licensed as banks.
Zondi made the remarks while delivering his departments budget recently.
'However, parliament's own records indicate an intention to allow Ithala to continue operating under exemptions, pending further deliberations. What is needed now is not only regulatory certainty but also a major transformation exercise to ensure that Ithala SOC Limited continues to serve as a pillar of development, equality, and opportunity in KwaZulu-Natal and beyond.
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