JOHANNESBURG - The troubled VBS Mutual Bank has been placed under curatorship with immediate effect, South African Reserve Bank (SARB) governor Lesetja Kganyago reportedly announced on Sunday afternoon.
SARB governor, Lesetja Kganyago and the Registrar of Banks Kuben Naidoo updated media on the bank’s liquidity crisis at the central bank’s headquarters in Pretoria on Sunday
“VBS experienced increasing liquidity challenges over the last 18 months. These problems emanated from a failure of the board of directors and executive management to manage the bank’s rapid growth and its funding and liquidity position,” he reportedly told journalists in Johannesburg.
This had resulted in VBS Mutual Bank being placed under intense regulatory scrutiny, EWN reported.
“The liquidity challenges emanated from the maturity of a large concentration of deposits from municipalities and was exacerbated by the termination of other sizable deposits and the inability to source sufficient funding timeously,” EWN quoted Kganyago as having said.