Johannesburg, South Africa; 12 March 2018
The Black Management Forum (the BMF) has noted the decision taken by the South African Reserve Bank (the Reserve Bank) to put VBS Mutual Bank (VBS) under curatorship. The curatorship process should not have been the first method of intervention in assisting the bank with its liquidity challenges. The BMF is of the view that the Reserve Bank and National Treasury should use this process as an opportunity to move faster and address a sharp observation of the joint committees – the Portfolio Committee on Trade and Industry and the Standing Committee on Finance – concerning transformation in the financial services sector.
Amongst others, the parliamentary committees observed that “the main banks in South Africa function in a globalised financial system and that there are imperatives for the country to meet the requirements of global standards on the financial sector set by multilateral institutions in which South Africa participates. However, the committees believe that National Treasury and government in general shape policies and Bills too much on the basis of these standards and too little on the specific requirements of the country. Some of these standards could serve to undermine the goals of economic and social transformation in the country and exacerbate race, class, gender and other inequalities.”
The BMF will seek to engage with the management, shareholders, relevant key stakeholders of VBS as well as those from Treasury to get the full details and context on this matter and decision taken.
The BMF hopes that the outcome of the consultations with the relevant parties concerned will get VBS back to a fully operational Board and Executive to a sound footing. The BMF urges that the VBS commercial licensing application processbe expedited to ensure that they do notwait the normal 12 – 18 months review period.
About the Black Management Forum
The Black Management Forum (the BMF) has been in existence for 41 years. It is a thought-leadership organisation with the main purpose of influencing socio-economic transformation in our country, in pursuit of socio-economic justice, fairness and equity. The BMF stands for the development and empowerment of managerial leadership and the creation of managerial structures and processes that reflect the demographics and values of the wider society.
For more information, please contact:
Black Management Forum
Head: Marketing & Communications
076 431 2899