SA Central Bank denies Capitec probe

SA Central Bank denies Capitec probe

The Central Bank of South Africa has denied a media report that it was carrying out a probe into Capitec, a major lender in the country.

Based on a Bloomberg report, the central bank was reported to have queried Capitec’s loan origination fees.

A new report by Businessday South Africa says the central bank has not asked the National Credit Regulator to investigate Capitec’s loan initiation fees, as reported earlier by Bloomberg.

The report did some damage to the share price of Capitec. The lender’s shares fell as much as 5 percent following Bloomberg’s report, which cited an unnamed source, and were trading 3.2 percent lower at 1316 GMT.

“There is no such thing,” Capitec’s chief financial officer Andre du Plessis earlier told Reuters by telephone. “I have no knowledge of such an investigation being called.”