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A Ithala Bank stand at an event.
The Inkatha Freedom Party (IFP) says it hopes that the KwaZulu-Natal government will move to save the Ithala Bank.
The provincial Economic Development Portfolio Committee has also pledged to back the bank in its effort to fight against liquidation.
The IFP has vowed not to allow the liquidation of the bank like VBS Mutual Bank.
The party’s Treasurer-General Narend Singh says the Ithala Bank is still relevant.
”We know that the banks that we have, even now we still have difficulties of them granting loans to people that may not have enough security, particularly people in the rural areas and emerging entrepreneurs, but the KwaZulu Finance Corporation acted as a vehicle to provide financial support and many business houses that we have today, started with finance from the KFC.”
“We are all working very hard with Treasury and the Minister of Finance nationally, to see how we can put measures in place to ensure the continued existence of Ithala Bank.”
Ithala Bank faces liquidation: Khaya Sithole weighs in
On Friday, government assured retail depositors of Ithala that their money is protected in the process of winding up the state-owned financial entity.
The Reserve Bank’s Prudential Authority has filed papers in the High Court in Pietermaritzburg for the provisional liquidation of the bank.
Ithala believes the move is in the best interests of about 257 000 depositors.
In a statement, National Treasury says the bank’s clients could soon see their funds and accounts migrated to a different financial institution.
Both Treasury and the Reserve Bank are working closely to ensure an orderly process that protects depositors’ interests.
