(MENAFN- AFP) South Africa's central bank placed embattled lender African Bank Investments Limited under administration on Sunday after it admitted being hundreds of millions of dollars in the red and saw its share price almost entirely wiped out.
Reserve Bank Governor Gill Marcus told a news conference that Abil's board, plagued by bad debts, had not objected to the move and would cooperate.
"The first important measure has been the conclusion reached by the Registrar of Banks and the decision by the minister of finance to place African Bank under curatorship with effect from 4.00pm today (1400GMT)," Marcus said.
African Bank Investments Limited (Abil) admitted last week that it needed 8.5 billion rand ($800 million, 600 million euros) to continue operating.
CEO Leon Kirkinis resigned last Wednesday and the bank's share price collapsed from 5.88 rand to 31 cents on Friday, wiping out more than 95 percent of its value in just three days. It had already plummeted from 30 rand a share in March last year.
"African Bank Limited board has, after due consideration, advised the registrar that it does not oppose curatorship and has taken the appropriate resolutions to facilitate the process," Marcus said.
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