The Reserve Bank has finally decided to liquidate VBS Mutual Bank. It filed papers at the Pretoria High Court on Monday for the final liquidation.
It says VBS is hopelessly insolvent and massive fraud has been perpetrated against it.
The Reserve Bank believes that the final winding up of VBS is in the best interest of all parties.
Reserve Bank Governor Lesetja Kganyago has put VBS under curatorship in March this year after the bank faced liquidity challenges for several months.
This emanated from the board of directors and executive management’s failure to manage the bank’s rapid growth and liquidity position.
The final liquidation hearing is expected to be heard by the Pretoria high court on the 3rd of November.
Government has recently announced that it will not bail out municipalities that invested more than R1, 57 billion into VBS.
Retail depositors such as stokvels and burial societies have been able to withdraw some of their money not exceeding R100 000 from the bank.
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