Guarantees secured for VBS depositors

Thursday, July 5, 2018

The Reserve Bank has secured a guarantee for retail deposits of up to R100 000 per depositor, for VBS Mutual Bank retail depositors.

In a statement on Wednesday, the central bank confirmed that it has secured the guarantee from National Treasury for the deposits.

“The Reserve Bank will announce the details on the repayment of retail deposits on Monday 9 July at 2pm,” it said.

This follows the announcement by the bank on 11 March that all retail deposits up to the amount of R50 000 per depositor will be guaranteed.

“With concurrence of the Minister of Finance [Nhlanhla Nene], the guarantee has been increased to R100 000 per retail depositor, in line with the proposals in the discussion paper on the deposit insurance scheme published in May 2017.”

The bank added that the curator will continue to collect on loans due to VBS Mutual Bank. In addition, individuals and entities with loans at VBS Mutual Bank are expected to continue to make payments on these loans.

Back in March, the bank announced that it had placed the black-owned bank which has most of its branches in Limpopo under curatorship.

The Reserve Bank has asked retail depositors to remain patient and know that it continues to prioritise their best interests. –