Ramaphosa assures Parliament Postbank won’t become another VBS

CAPE TOWN - President Cyril Ramaphosa has assured Parliament that the Postbank won’t become another VBS when it finally gets its licence to operate as a fully-fledged State bank.

But Ramaphosa said the Postbank still needs funds and the proper approval from the South Africa Reserve Bank's Prudential Authority before it can be granted a licence to function commercially.

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

Ramaphosa was answering questions in the National Assembly on Tuesday on the need to capitalise the Postbank and the creation of a government-owned bank.

The president said the Postbank must still clear a few compliance hurdles before it can establish itself as South Africa’s government-owned commercial bank.

He said this is because of the stringent conditions of the SARB to ensure the industry involves the correct people.

Ramaphosa said while VBS was not a registered commercial bank before it was looted and collapsed, the new Postbank won’t follow suit.

“That is why the type of mishap happened in VBS. What we are seeking to do now is to forestall and make sure that what happened, for instance in VBS, does not happen.”

He said the regulatory environment to function as a commercial bank is governed by many laws that ensure that banks remain compliant.