The South African Reserve Bank has placed a small bank — VBS Mutual Bank — under curatorship. The decision was based on concerns that the bank was facing a liquidity crisis and could collapse, devouring depositors’ funds. Some have criticised the decision. Sibonelo Radebe from The Conversation Africa asked the University of the Witwatersrand’s head of the school of economic and business sciences, Jannie Rossouw, to explain the process. SIBONELO RADEBE: What is curatorship? JANNIE ROSSOUW: In simple terms, curatorship of a bank means that its board and executive management are relieved of their duties. A curator is appointed by the South African Reserve Bank in consultation with the Treasury and the minister of finance. The curator takes over the full management functions of the bank with the purpose of rehabilitating it. Curatorship is triggered by concerns about the management or financial viability of the bank. For example, if the board or executive management are found guilty of ...

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