The Premier of KwaZulu-Natal Honourable Thamsanqa Ntuli calls on all stakeholders, depositors, and the broader public not to panic or engage in a “run on the bank.” The Provincial Government is working around the clock to ensure that Ithala’s operations are protected and that it continues to serve the people of KwaZulu-Natal.
We urge the public to stand in solidarity with us as we fight to preserve an institution that represents economic dignity, inclusion, and empowerment for millions.-Premier Ntuli
This follows a recent court judgment which paves the way for Ithala Bank to resume full operations, marking a major milestone in restoring the institution to its former stature.
Premier Ntuli welcomed the ruling as a success for the people of KwaZulu-Natal and a reflection of the Provincial Government’s commitment to preserving and strengthening public financial institutions. He reiterated government’s ongoing support for Ithala and its role in promoting inclusive economic participation, particularly for historically marginalised communities.
The announcement by the Prudential Authority regarding alleged insolvency and regulatory non-compliance by Ithala has caused widespread concern and panic. As the KwaZulu-Natal Provincial Government, we wish to place it on record that we strongly oppose any attempts to interrupt the activities and operations of Ithala Bank.
We believe the claims made by the Prudential Authority are unfounded and appear to form part of a broader agenda to undermine one of the few financial institutions historically designed to serve marginalized communities in KwaZulu-Natal.
Challenges with the Prudential Authority
Ithala Bank currently operates under a banking licence exemption, which expired on 15 December 2023. Despite submitting full banking licence applications in both 2016 and 2023, the Prudential Authority declined both applications.
*For media enquiries, please contact:*
*Mr. Bongani Gina*
Head of Provincial Government Communications
071 217 3037
*Mr. Lindelani Mbatha*
Media Liaison Officer
061 499 0774
*Issued by the Provincial Government of KwaZulu-Natal.*