The bank provides financial services to the commercial farming sector and to agricultural-based businesses.

Phakamani Hadebe, head of Asset and Liability Management at the Treasury, will go to the Land Bank as interim CEO until the appointment of a permanent head for the lender.

The Treasury last year agreed to make a 1.5 billion rand ($206 million) loan guarantee and a cash injection of 700 million rand to the struggling lender to make it more effective.

Finance Minister Trevor Manuel has given the board "an opportunity to apply their minds and finalise the future direction of the bank," a statement from the Treasury said.

"There has not been any time frame given.... (the board) will look at all the matters and there has not been another date set for a meeting but that should happen quite soon," said Treasury spokeswoman Thoraya Pandy.

In March, ratings agency Fitch affirmed the Land Bank's Long-term 'AA(zaf)' with stable outlook and short-term 'F1+(zaf)' rating.

Fitch said the bank's stand-alone position was weak.

"The bank is loss-making, which is a function of weak controls and poor risk management. In the absence of a clearly defined, well-structured turnaround strategy, together with new senior management appointments, Fitch believes that Land Bank will continue to struggle," it said.