The application for the liquidation of the VBS Mutual Bank will be heard in the High Court in Pretoria next Tuesday.
The bank was put under curatorship earlier this year when it started experiencing liquidity challenges. It later emerged in a report commissioned by the Reserve Bank, that the collapse of the bank was due to looting of R2 billion paid to about 50 people or companies. Deputy Reserve Bank Governor and Registrar of Banks Kuben Naidoo had this advice to any person who wishes to save the bank.
” Our advise to anybody who wants to save the bank or to provide similar services in the region or to use the financial resources that they have to apply for a new banking licence this will be cheaper and will avoid the IT system problems associated with VBS, a new licence may even apply to use for the same name.”
