African Bank, which was placed under curatorship in 2014 following its collapse, has received approval from the SA Reserve Bank (Sarb) and the Financial Services Board (FSB) to set up a new "Good Bank" with its remaining uncontaminated assets.
Commenting on these developments, Brian Riley CEO designate of Good Bank stated: "These are further significant developments to enable the commencement of Good Bank.
"We continue to engage proactively and constructively with the regulators, and in particular the SARB, which is a key stakeholder in the journey to the launch of the business."
The Good Bank has already struck agreements with majority of its debt holders, and is now subject to a credit provider licence from the National Credit Regulator.
Commencement of operations is dependent on the final registration of Good Bank as a bank under Section 16(1) of the Banks Act.