Eight years waiting: Why South African Postbank can’t get a licence
The South African Postbank remains without a full commercial banking licence because it has not yet met conditions
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The South African Postbank remains without a full commercial banking licence because it has not yet met conditions set by the South African Reserve Bank.
This is according to the Minister of Communications and Digital Technologies, Solly Malatsi, who told Parliament that the bank must replace the remaining Gold Cards, improve its security systems, and strengthen its financial position before it can apply for a licence.
Malatsi said this in a parliamentary response to questions posed by African National Congress (ANC) MP Shaik Imraan Subrathie, who asked what steps the department had taken to secure the bank’s commercial banking licence and capitalisation, and what regulatory or operational hurdles were causing delays.
"Over a period of years, the Department has taken steps to facilitate Postbank's transition towards a commercial and state bank license through legislative and regulatory steps consisting, in the main, of the President's assent to the South African Postbank Limited Amendment Act, which commenced in February 2024," Malatsi said.
However, Malatsi said that the South African Reserve Bank (SARB) has repeatedly issued Variation Notices to Postbank regarding its designation as a clearing system participant. The bank must meet the conditions of Variation Notice 4, including replacing the remaining Gold Cards and improving security, before it can apply for a full banking licence.
"The South African Reserve Bank (SARB) has repeatedly issued Variation Notices to Postbank regarding its designation as a clearing system participant (meaning a financial institution authorised to clear payment instructions in its own name).
"Postbank must meet the conditions of the SARB Variation Notice (VN4) relating to the replacement of the remaining Gold Cards and improvements to security before it can apply for a banking licence. This is anticipated to take place only in 2027, provided the conditions of the Variation Notice are then met."
He added that the registration of a Bank Controlling Company (BCC) and the appointment of its board members will only proceed once Postbank strengthens its financial position and meets capital adequacy requirements.
"In addition, the Registration of a Bank Controlling Company (BCC) to facilitate the banking licence process requires the Department to proceed with the appointment of BCC Board members, which will commence when it is clear that Postbank is in a position to meet its adequacy ratio and has improved its own financial position".
"In terms of the capitalisation of the Postbank, in an oral reply session in the National Assembly on 6 September 2025, the President indicated that capitalisation will be considered, but only after Postbank secures authorisation from the SARB to establish the Bank, based on a viable business case submitted via the Minister of Communications and Digital Technologies, which has not happened to date. Postbank has also failed to provide important documents to support its activities in preparation for the application."
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