Reserve Bank: Company vying for VBS would need a new licence

VBS Mutual Bank.
VBS Mutual Bank.

The Reserve Bank says the investment group vying for the assets of VBS Mutual Bank would need to acquire a banking licence before taking over the collapsed lender.

In a statement released on Thursday evening, the central bank said it was aware of assertions by Investment Group Africapacity that it intended to buy the scandal-hit VBS.

"Although Africapacity has written to the SARB and the Minister of Finance stating its intention to buy VBS, it has not formally applied for a banking licence," the SA Reserve Bank said in a statement.

It further stated that should the company wish to acquire the assets of VBS, "it would need to comply with the requirements of the Mutual Banks Act 124 of 1993."

VBS was placed under liquidation on November 13, 2018 and its banking activities and licence suspended, amid a liquidity crisis.

The extent of the bank’s financial crisis was exposed in a report titled The Great Bank Heist‚ which was commissioned by the SARB. The report detailed how nearly R2bn was looted, in a scheme said to have benefited individuals and entities related to the bank’s executives‚ including its largest shareholder‚ Vele Investments.

Some of the municipalities from the North West, Limpopo and Gauteng deposited close to R1.6bn in VBS, in contravention of the Municipal Finance Management Act and municipal investment regulations.

The Reserve Bank said a banking licence was not transferable, and the Menlyn-based Africapacity would require a formal new application. 

ZAR/USD
17.00
(-0.09)
ZAR/GBP
21.24
(-0.12)
ZAR/EUR
19.14
(-0.13)
ZAR/AUD
11.81
(-0.13)
ZAR/JPY
0.16
(-0.20)
Gold
1774.74
(+0.03)
Silver
18.05
(+0.01)
Platinum
808.00
(+0.25)
Brent Crude
42.78
(-0.79)
Palladium
1914.01
(+0.62)
All Share
54521.90
(-0.17)
Top 40
50179.89
(-0.26)
Financial 15
10150.02
(-0.64)
Industrial 25
76554.73
(+0.52)
Resource 10
50138.02
(-1.24)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1576 votes
I am taking a hit, but should be able to recover in the next year
23% - 2071 votes
My finances have been devastated
34% - 3091 votes
It's still too early to know what the full effect will be
25% - 2241 votes
Vote