Co-operative Governance and Traditional Affairs Minister Zweli Mkhize says despite the unfortunate situation regarding VBS Mutual Bank, many more black-owned financial institutions are needed if economic transformation is to be achieved.

Mkhize made these comments while speaking in the National Assembly where the African National Congress (ANC) brought an urgent motion on a matter of public interest to debate the VBS debacle.

Mkhize says what has happened at VBS should not be used as an excuse to deprive poor people access to the main stream economy.

“We do need many such banks which are designed to assist the poor so that they can assist black businesses, which are always marginalized by mainstream banks and other financial institutions. The issue of transformation in the banking sector cannot be postponed because this case demonstrates that there are such positive institutions that should be available,” says Mkhize.

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