The South African Reserve Bank (SARB) has applied to the High Court for an order to liquidate Ditsobotla Primary Savings and Credit Co-operative Bank Limited situated in Lichtenburg in the North West.

This follows an earlier decision by the finance minister, based on the recommendation by the SARB, to place the bank in resolution.

Since then, an in-depth assessment was done which found that Ditsobotla Bank’s financial position was significantly worse than previously reported.

The resolution practitioner concluded that the bank is insolvent and identified significant compliance, governance and operational failures.

It was concluded that there was no reasonable probability that the continuation of the resolution process would enable the bank to pay its debts and meet its obligations.

The liquidation hearing is scheduled for next week Friday.

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