Postbank banking licence could take up to three years, says Malatsi

Postbank's quest for a full commercial banking licence could span up to three years, according to Communications Minister Solly Malatsi. In a written parliamentary response, Malatsi stated that the bank must still meet crucial governance, regulatory, and capital requirements. The process, which falls under Section 12 of the Banks Act 1990, involves the establishment and operation of the Postbank bank controlling company, the appointment of its board, and the finalization of shareholder governance arrangements.

Additionally, Postbank needs to be recapitalised to meet prudential capital requirements and support the modernisation of its technology and infrastructure. The process also includes completion of institutional and operational readiness requirements, as well as the fulfilment of remaining regulatory conditions issued by the Prudential Authority.

Postbank has requested shareholder capital support from the National Treasury for consideration during the 2027/2028 MTEF period. Malatsi indicated that once all outstanding requirements are addressed and necessary approvals are secured, the licensing process is expected to take between two and three years. Regarding social grants, Malatsi assured that the government is working to ensure uninterrupted payments.

Postbank and the Social Relief of Distress (SASSA) are collaborating to prevent disruptions during the card replacement process, which is aimed at maintaining access to social grant payments while the MSA (Means Tested Assistance) is being finalised.