South African Reserve Bank applies to the High Court to liquidate Ditsobotla Primary Savings and Credit Co-operative Bank

The South African Reserve Bank (SARB) has applied to the High Court for an order placing Ditsobotla Primary Savings and Credit Co-operative Bank Limited (DCB) into liquidation, following an assessment that continuing the resolution process is unlikely to enable the bank to meet its debts and obligations. DCB was placed in resolution on 1 August 2025 after failing to meet its obligations, after the Minister of Finance, acting on SARB’s recommendation, decided to place the bank in resolution. Subsequent in-depth assessments by SARB and the resolution practitioner found DCB’s financial position to be significantly worse than previously reported by management, with total assets materially below liabilities, alongside significant compliance, governance and operational failures. The resolution practitioner concluded that DCB is insolvent, highly unlikely to attract an alternative equity investor to recapitalise, and has an unsustainable business model, leading SARB to conclude that urgent liquidation would best protect creditors, primarily depositors, by preserving assets and enabling investigations where necessary. The liquidation hearing is scheduled for 29 August 2025. The Corporation for Deposit Insurance will continue the reimbursement process for qualifying depositors of up to ZAR 100,000 per depositor from the Deposit Insurance Fund, while depositors with balances above ZAR 100,000 will retain a claim in the liquidation for the remaining amount.