Regulatory Alerts2017-08-25
Designation of Ithala SOC Limited as an Institution Not Engaged in the Business of a Bank
The Minister of Finance has designated Ithala SOC Limited, a wholly owned subsidiary of Ithala Development Finance Corporation Limited, as an institution exempt from the statutory definition of "the business of a bank" for the period from 1 October 2017 to 30 September 2019. The designation mandates that the entity must maintain a minimum capital adequacy ratio of 15 percent against risk-weighted assets, hold liquid assets equal to at least 7.5 percent of public liabilities, and strictly ring-fence its deposit-taking operations from the parent corporation's lending activities. Furthermore, Ithala SOC Limited is prohibited from using any name or symbol implying it is a registered bank and must fully comply with all ongoing prudential and reporting requirements imposed by the Registrar of Banks.