VBS Mutual Bank, one of South Africa’s smallest lenders, has been put into administration after it was unable to repay money owed to municipalities, according to the country’s central bank.
The management team has been relieved of its duties and a curator from the auditing firm SizweNtsalubaGobodo put in place following a “severe liquidity crisis,” Lesetja Kganyago, governor of the South African Reserve Bank, told reporters on Sunday. Retail depositors’ money is guaranteed and VBS will stay open, he said.