President Cyril Ramaphosa announced that Postbank is not yet prepared to receive a licence to operate as a fully-fledged state-owned bank. During a session in the National Assembly on Tuesday, he emphasized that while financial inclusion is a national priority, Postbank must complete several requirements before qualifying for a commercial banking licence.
In response to a question from ANC Member of Parliament Mdumiseni Ntuli about government support for Postbank’s licensing efforts, Ramaphosa noted that the institution has not fully met the necessary conditions, particularly concerning its card key management processes and compliance with prudential standards.
“The immediate challenge for Postbank is to strengthen its governance, ensure compliance with prudential standards, and stabilize its finances,” he stated.
The government remains committed to supporting Postbank in acquiring its licence, aiming to extend affordable banking services to underserved communities, small businesses, and youth- and women-owned enterprises. Ramaphosa explained that improved access to affordable banking and credit would unlock entrepreneurship, foster job creation, and stimulate growth in local economies.
“Financial inclusion empowers youth- and women-owned enterprises, narrows inequality, and builds resilience in households and communities,” he added.
The President highlighted that South Africa boasts a competitive financial services sector, with commercial banks, development finance institutions, co-operative banks, and new digital entrants providing various financial products and services to individuals and small businesses.
The Postbank Amendment Act was enacted to enhance the diversity of the financial sector and focus on underserved communities. It aims to establish Postbank as a developmental state-owned commercial bank, offering accessible financial services to all South Africans.
While capitalisation will be considered, Ramaphosa stressed that it would only occur after Postbank receives authorization to establish a bank. Once granted, the institution will have 12 months to secure the necessary funding for registration.
He clarified that the Postbank board is responsible for developing a business case, which must be presented to the government through the Minister of Communications and Digital Technologies.
“These steps are vital to ensure that Postbank secures its banking licence and fulfills its critical mandate to promote financial inclusion for all,” he stated.
In response to supplementary questions, Ramaphosa also mentioned the potential of merging African Bank and Postbank to create a state bank. He acknowledged the need to leverage all available assets to extend banking services to South Africa’s unbanked population.
“There is a general consensus on the necessity of a state bank. The key question is how to proceed with its establishment and integrate all essential elements, whether through Postbank or African Bank,” he said. “We must consider that African Bank has shareholders who are not state entities, and all stakeholders need to be synchronized to create a state bank.”