Authorization to conduct business of VBS Mutual Bank not transferable, SARB says

“All or part of a bank/mutual bank’s assets (which do not include the banking license) may be acquired with the prior approval of the regulatory authorities,” the Reserve Bank said.

The South African Reserve Bank (SARB) says it has been made aware of the assertions made by Africapacity of its intention to buy VBS Mutual Bank (VBS) or part of it.

In a brief statement, the SARB said the authorization to conduct the business of a bank/mutual bank (banking license) is not transferable and requires a formal new application for such authority to be submitted to the regulatory authorities.

"All or part of a bank/mutual bank's assets (which do not include the banking license) may be acquired with the prior approval of the regulatory authorities," the Reserve Bank said.

VBS was last year placed into liquidation, suspending its banking activities and license. The SARB pointed out that VBS is therefore under the control of the duly appointed provisional liquidator, Anoosh Rooplal.

"Any proposals relating to the proposed acquisition of the assets of VBS should be directed to Mr. Rooplal. 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 license.

"Should Africapacity wish to acquire the assets of VBS, it would need to comply with the requirements of the Mutual Banks Act 124 of 1993," said SARB.

(With Inputs from South African Government Press Release)