Postbank could get a full banking licence
The banking industry, the financial sector’s regulator and Cosatu yesterday all gave their backing for the establishment of Postbank as a fully fledged bank, reports BusinessLIVE.
They say it would help create a more competitive sector.
Parliament’s Communications & Digital technologies Portfolio Committee yesterday held public hearings on the SA Postbank Ltd Amendment Bill which could see the government finally realise plans to set up a state-owned bank.
The Bill aims to align Postbank with the Banks Act and provides for the establishment of a separate holding company in terms of banking regulations.
Once promulgated, Postbank will be able to operate as a separate entity with its regulatory framework outside the SA Post Office.
Postbank will be able to complete its banking licence application only after the Bill is enacted, when it will also be removed from the post office group of companies.
Postbank has been operating as a bank under an exemption notice from the Prudential Authority for many years, said Mark Brits, a senior general manager at the Banking Association SA.
As a result, is has been permitted to accept deposits as a bank, but without the reporting obligation to the Reserve Bank as the regulator and supervisor of banks.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
