The SARB has placed VBS Mutual Bank under curatorship, says Governor Lesetja Kganyago.
Governor Lesetja Kganyago announced yesterday, 11 March, that the South African Reserve Bank had decided to place VBS Mutual Bank under curatorship. This was due to VBS currently facing a severe liquidity crisis, he said, and upon the recommendation of the Registrar of Banks.
Curatorship is considered the most suitable and effective mechanism to facilitate orderly management of VBS, Kganyago noted. He said:
“The SARB is of the view that the appointment of a curator is in the best interest of the public and VBS depositors.”
Auditing firm SizweNtsalubaGobodo has been appointed curator, and the current board and management at VBS have been relieved of their powers. According to Kganyago, the curator will assess whether the situation at the bank is salvageable and determine the way forward. Moreover, the bank’s planned JSE listing has been postponed, pending the completion of the curatorship process.
Pictured: VBS Mutual Bank board of directos; CFO Philip Truter is pictured back row, third from left