Banking Association of SA suspends VBS membership pending investigations | Fin24

Banking Association of SA suspends VBS membership pending investigations

Nov 07 2018 16:53

The Banking Association of SA (BASA) has suspended VBS Mutual Bank's membership, pending the outcome of the investigations and legal processes related to the bank's conduct.

In a statement issued by BASA on Wednesday, it said it was clear from the report, the Great Bank Heist, that "VBS Bank has violated the terms of their membership".

It said the "criminal activity that led to the collapse of VBS has set back inclusion and transformation in the financial services sector". 

"The Banking Code of Practice in its preamble states: 'We, the members of the Banking Association South Africa, undertake that we will act fairly and reasonably in a consistent and ethical manner.'

"BASA is confident that the Prudential Authority in the South African Reserve Bank is managing the curatorship and application for the liquidation of VBS in terms of the applicable legislation and regulations, as well as in the best interests of its depositors and the stability of the financial system," it said.

BASA went on to urge the necessary authorities to "act quickly" in terms of dealing with those who are guilty.

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