SARB and Treasury guarantee R300 million in VBS deposits

Backed by National Treasury, SARB has guaranteed more than R300 million in retail deposits at VBS Mutual Bank.

At R100,000 per depositor, the South African Reserve Bank (SARB) has guaranteed around R336 million in deposits. It last week increased the value of guaranteed funds for retail depositors from R50,000 to R100,000.

According to Kuben Naidoo, SARB deputy governor, total retail deposits with the bank are estimated to be around R370 million. This means that 97 percent of the bank’s 22,700 retail depositors will receive all their money, he says. 

On Monday, Lesetja Kganyago (pictured), governor of SARB, outlined an agreement reached with Nedbank to facilitate the payment of depositors’ monies.

The guarantee for individual depositors, funeral schemes, burial societies, savings clubs and stokvels was secured from National Treasury.