In a landmark ruling, the South Gauteng High Court has granted an urgent interim order in favour of YWBN Mutual Bank, allowing the bank to change its name to eNL Mutual Bank ahead of its scheduled launch next month.
The court’s decision on Wednesday comes amid ongoing delays and frustrations over the South African Reserve Bank (SARB) Prudential Authority’s (PA) refusal to approve the name change, which threatens the bank’s operational timeline.
Background and Legal Action
YWBN Mutual Bank was initially approved to establish in March 2021, with the South African Reserve Bank (SARB) granting authorisation on January 29, 2024, under Section 13 of the Mutual Banks Act.
Despite this, the bank encountered hurdles when seeking the SARB’s permission to amend its name.
The Reserve Bank showed little interest in processing the request, effectively stalling the bank’s plans to rebrand ahead of its launch.
In response, Nthabeleng Likotsi, the founder of YWBN Mutual Bank, along with her legal team, filed an application in the South Gauteng High Court seeking an urgent order to compel SARB to approve the name change.
Court Ruling and Key Quotes
Judge Mudau presided over the matter and delivered a ruling that, while not fully deciding on the merits of the name change, granted a provisional order allowing the bank to proceed with rebranding.
The court ordered SARB to, within 48 hours, record the new name, eNL Mutual Bank, in its official records.
The court’s judgment stated, “The respondent and the registrar are directed to, within 48 hours of this order, enter the new name in their records in place of the former name, provided the certificate previously issued is delivered for cancellation. A new certificate shall then be issued to the applicant under the new name.”
The court further indicated that SARB has until June 9 to justify why a full order should not be granted, effectively giving the regulator a final deadline to act.
Impact and Significance
This ruling marks a historic milestone, making Likotsi the first woman in South Africa to have her name associated with a bank—an achievement that places her among the ranks of notable banking pioneers such as Barclays and JP Morgan.
In her affidavit, Likotsi stated that the proposed name has already been tested in the market during the ‘Own the Bank Share Scheme,’ surpassing its initial projections by attracting 10,000 subscribers—more than three times the target.
“This overwhelming response demonstrates strong public support for the name and the bank’s mission.”
She further highlighted the urgency of the matter, noting that the bank was set to go live on May 12, 2025, with the Payment Association of South Africa (PASA), and that delays threaten to impose significant financial costs and operational risks.
Likotsi expressed frustration at SARB’s ongoing inaction.
“Despite numerous follow-ups, the respondent has failed to make a decision, which is not only unfair but also prejudicial to our bank’s operational and strategic plans.”
Legal and Regulatory Concerns
The bank’s legal team argued that SARB’s inaction to approve eNL Mutual Bank constitutes a breach of statutory obligations under Sections 14 and 35 of the Mutual Banks Act.
The delayed approval has already begun to cause tangible harm—dwindling liquidity, rising costs, and potential breaches of prudential standards.
The application also warned of the severe consequences of further delays, including the risk of the bank being placed under curatorship if the situation remains unresolved.
Next Steps
The court has set a deadline of June 9 for SARB to respond fully, and the bank is preparing to proceed with its launch under the new name. The legal process continues, but for now, Likotsi’s vision for a woman-led mutual bank has taken a significant step forward.
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