1999-10-25: Press release by the Office for Banks : Appointment of a curator to FBC Fidelity Bank Limited
Last Modified Date:
2020-10-08, 08:16 PM
Media > Media Releases
The Office for Banks has noted the action taken by FBC Fidelity Bank Limited ("FBC") to cease its operations and to suspend the listing of the shares and loan stock units of the bank as well as the shares of Thebe Financial Services Limited. In addition, recent events pertaining to FBC have evidently led to large-scale withdrawals, by depositors, of their deposits held with FBC. The concomitant outflow of funds has apparently resulted in FBC experiencing difficulties with maintaining its required levels of liquidity. Based, however, on the information that FBC rendered in terms of the provisions of the Banks Act, 1990 (Act No. 94 of 1990 - "the Banks Act", this Office has no reason to believe that FBC is not solvent. Consequently, the Minster of Finance has deemed it desirable, in the public interest, with the written consent of the Chair of FBC's board of directors, in terms of section 69 of the Banks Act, with effect from 25 October 1999, to appoint a curator to FBC. An important reason for the appointment of the curator to FBC is to facilitate the orderly management of the bank, having regard to the bank's liquidity problems. Upon the appointment of the curator, the management of FBC vests in the curator, subject to supervision by the Registrar of Banks, and any other person vested with the management of the affairs of FBC will be divested thereof. The curator is also required to recover and take possession of all the assets of FBC. The designated curator of FBC ("the curator") is Mr R K Store of the firm of auditors Deloitte & Touche, Building 15, First Floor, The Woodlands, Woodland Drive, Woodmead.Depositors are hereby assured that the Office for Banks and the curator will do everything in their power to ensure the protection of the interests of depositors.