Ramaphosa: Postbank not yet ready to be granted a licence to be fully-fledged state-owned bank

CAPE TOWN - President Cyril Ramaphosa says the Postbank is not yet ready to be granted a licence to function as a fully-fledged state-owned bank.

He said the struggling entity, which serves mostly rural and poor communities, must clear a few compliance hurdles before it can establish itself as South Africa’s government-owned commercial bank.

Ramaphosa was responding to questions around the establishment of state bank during a question-and-answer session in the National Assembly on Tuesday.

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The president was asked by African National Congress (ANC) chief whip, Mdumiseni Ntuli, whether the government had established the need to capitalise the Postbank to ensure its viability.

Ramaphosa was also asked on the establishment of a state bank, which would entail the licensing of the Postbank.

President Ramaphosa told the National Assembly that the Postbank was still having serious governance challenges and did not yet meet the requirements.

"Now, according to the minister, the Postbank has not yet fully met the conditions for a banking licence, particularly around its card and key management processes and the compliance with prudential standards that are required."

Ramaphosa said Postbank’s immediate challenge was to strengthen its governance to make sure the bank was compliant with prudential standards and to stabilise its own finances.