VBS Bank chairman Tshifhiwa Matodzi has resigned just one day after the bank was placed in curatorship.
The bank got into financial trouble when municipalities withdrew large amounts of their money, which the bank was unable to cover. The Municipal Finance Management Act forbids municipalities from investing in mutual banks.
The Reserve Bank came under fire from the EFF, PAC and Black First Land First (BLF), which accused it of targeting black- owned banks.
The EFF and BLF claimed VBS was being victimised for coming to the rescue of former president Jacob Zuma in 2016.
The bank gave Zuma a mortgage to settle a Constitutional Court order that he repay money used in his Nkandla upgrades.
Reserve Bank governor Lesetja Kganyago dismissed claims that it meddled in the affairs of banks and their customers.
The bank was placed under curatorship with effect from 5pm on Sunday, a decision approved by new Finance Minister Nhlanhla Nene, who said the aim was to turn the business around. He said it was a better option than liquidation.
The finance minister said the appointed curator, Sizwe Ntsaluba–Gobodo, would help the bank get out of its crisis.