The South African Reserve Bank's Prudential Authority (PA) has lodged an application in the High Court in Pretoria for the final liquidation of VBS Mutual Bank.
The PA said there was no prospect of entering into any resolution plan for the bank. The application for the final winding-up was lodged on Monday.
“While VBS is currently under curatorship pursuant to a decision taken by the minister of finance on March 10‚ the PA is of the view that curatorship must now be terminated and VBS must be placed in final winding-up‚” it said. “This is as a result of the fact that VBS is hopelessly insolvent and massive frauds have been perpetrated against it.”
The PA expected the application to be heard in the high court on November 13.
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