Investors fear run on Capitec after Viceroy report

Investors were left rattled today as shares in Capitec Bank tumbled over fears sparked by a recent report released by Viceroy. The report drew comparisons between the defaults in Steinhoff and Capitec, leading to concerns about the stability of the financial institution. David Shapiro, Deputy Chairman of Sasfin Securities, shared his insights on the matter, highlighting the gravity of the situation and the potential impact on the banking industry. Viceroy's conclusion that Capitec is 'uninvestable' due to alleged fraudulent practices has sent shockwaves through the market, causing a massive sell-off and a sharp decline in the share prices of both Capitec and PSG. The report accuses Capitec of 'rolling over loans' and overstating assets, painting a grim picture of the bank's financial health. The prospect of a run on Capitec is now looming large, with depositors understandably anxious about the safety of their funds. Calls for intervention from the South African Reserve Bank and the finance minister have grown louder, as authorities seek to restore confidence in the banking sector. The implications of this report are far-reaching, with the systemic risk posed by Capitec's potential collapse sending shockwaves through the industry. It is imperative for swift and decisive action to be taken to address these concerns and prevent a full-blown crisis from unfolding.