180312-vbs-edjpg

Why VBS Mutual Bank placed under curatorship

Economist at Econometrix, Sam Rolland says VBS's biggest crime was to accept short-term deposits from municipalities under the municipal finance management act. According to Rolland, municipalities are not allowed to place deposits in mutual banks.

The difficulty with this is a lot of VBS balance sheets relied on deposits from municipalities, so cutting that, really was cutting a big lifeline of the business.

Sam Rolland, Economist at Econometrix

This comes after South African Reserve Bank Governor, Letja Kganyago's announcement on 11 March that the bank is put under curatorship with immediate effect.

Listen to Sam Roland explaining why VBS has to be investigated further:


Recommended

by NEWSROOM AI
Read More
WC DA leader refuses to hand over electronic devices as party probes media leak

WC DA leader refuses to hand over electronic devices as party probes media leak

Western Cape DA leader Bonginkosi Madikizela confirmed that he was asked to hand over his devices but he says that he refused.

KZN Metrorail services suspended due to vandalism

KZN Metrorail services suspended due to vandalism

Metrorail KZN Regional Spokesperson Zama Nomnganga says a build up of events led to the decision.

Public Protector's office accused of irregular expenditure

Public Protector's office accused of irregular expenditure

EWN reporter Bonga Dlulane says the Public Protector failed to comply with legislation when buying goods and services.

ANC factions are very much alive - analyst

ANC factions are very much alive - analyst

Political Editor at Mail and Guardian Matuma Letsoalo questions the face of unity shown by the ANC.

City of CT apparently undersold prime Foreshore property by millions

City of CT apparently undersold prime Foreshore property by millions

GroundUp reports on an apparent valuation blunder which saw the City sell Site B to Growthpoint for much less than market value.

Fate of VBS Mutual Bank lies in hands of curators

Fate of VBS Mutual Bank lies in hands of curators

Reserve Bank Governor Lesetja Kganyago has announced that VBS Mutual Bank has been placed under curatorship with immediate effect.

Popular articles
Ramaphosa unveils statue of Madiba at UN headquarters

Ramaphosa unveils statue of Madiba at UN headquarters

The 1.9 metre statue is said to be a gift from South Africa to the international community.

KZN Metrorail services suspended due to vandalism

KZN Metrorail services suspended due to vandalism

Metrorail KZN Regional Spokesperson Zama Nomnganga says a build up of events led to the decision.

WC DA leader refuses to hand over electronic devices as party probes media leak

WC DA leader refuses to hand over electronic devices as party probes media leak

Western Cape DA leader Bonginkosi Madikizela confirmed that he was asked to hand over his devices but he says that he refused.

[LISTEN] 'Molewa was an activist in her own quiet way'

[LISTEN] 'Molewa was an activist in her own quiet way'

Environmental Affairs spokesperson Albi Modise pays tribute to Minister Edna Molewa who passed away on Saturday morning.

Ramaphosa's new advisory team has 6 months to draw up national land reform plan

Ramaphosa's new advisory team has 6 months to draw up national land reform plan

Land researcher Prof. Ruth Hall says the panel faces an exciting challenge to see how government can fix the land reform process.

[LISTEN] Opinion: 'Thuma Mina dares not fail'

[LISTEN] Opinion: 'Thuma Mina dares not fail'

Breakfast Show host Bongani Bingwa says skeptics are right to question whether Ramaphosa will succeed in his mandate as president.