Johannesburg - The curator of African Bank, Tom Winterboer of PwC, announced on Tuesday that he can now initiate the legislative process of restructuring African Bank and creating a "Good Bank".
This is because the Banks Act Amendment Bill 2014 was signed into law with effect from June 29 2015.
Then governor of the South African Reserve Bank (Sarb) Gill Marcus placed African Bank under curatorship on August 10 2014.
At the same time, Sarb set out a proposal for the restructuring of the bank, which entailed the creation of a new "Good Bank" consisting of African Bank's healthy assets.
READ: Rescue plan for African Bank
The curator announced last week that African Bank has managed to narrow its loss to R2.8bn in the six months to end-March from a restated R5.9bn in the previous comparable period.
READ: African Bank narrows loss to R2.8bn
At the time Winterboer said the restoration to profitability and subsequent achievement of acceptable investor returns in the "Good Bank" will take time, effort and commitment.
Winterboer said on Tuesday that he is currently unable to give a date on which the suspension of African Bank securities is expected to be lifted.
A Treasury official said in March that the "Good Bank" could be listed in early 2016. In the meantime, Brian Riley has been appointed as CEO designate of the "Good Bank" and its new holding company.