VBS Mutual Bank had grand growth ambitions, inquiry hears

fin24.com

- fin24.com | 3 months ago

Disgraced lender VBS Mutual Bank had grand growth ambitions before it was hit by a liquidity crisis and put under administration in March 2018, the judicial commission of inquiry into the Public Investment Corporation heard on Monday.

The commission is investigating governance and investment decisions taken by Africa’s largest asset manager, which has R2trn under its control, mostly on behalf of government employees. According to evidence submitted by Khaya Zonke, a senior manager in Post Investment Monitoring and Valuations, VBS quickly shifted from performing entity to a distressed business, skipping other risk ratings used by the fund to monitor investments.

Subscribe to Fin24's newsletter hereZonke told the inquiry that the collapsed bank had a '2021 growth strategy', which should have seen it increase its balance sheet to R11bn and expand from being a regional bank to a national financial institution.

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