Postbank CEO tells MPs they are ready to take on State bank role

CAPE TOWN - Postbank CEO Nikki Mbengashe has told Parliament that there's still a need for a fully functional State bank to help resolve some of the country's economic challenges. 

She said the creation of a state bank doesn’t mean they’re going to be "reckless" when it finally enters the market to compete against private banks, using the success of the State Bank of India as an example. 

Mbengashe was briefing the Portfolio Committee on Communications and Digital Technologies on the Postbank’s strategic plan for the next five years. 

President Cyril Ramaphosa signed the Postbank Amendment Act in 2023, and the act essentially paved the way for the Postbank to become a fully-fledged independent state bank. 

But the Postbank, which has operated as a subsidiary of the post office since its inception, is yet to apply for a banking licence. 

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Mbengashe explained the need for the state bank, especially during tough economic times when banks generally “close the taps” when it comes to providing finance. 

"And it happens as well with individuals when we are all struggling. It just means that every bank needs to structure differently to absorb some of that risk and also not to be reckless, to balance that. And I think that's really there’s a need for a state bank in South Africa because that does not exist at all."

Mbengashe said the state bank won’t just target lower-income clients and their ambition is to also service the middle class, as well as business banking.