Ramaphosa’s Promise: The New Postbank Will Not Be “Another VBS”

Ramaphosa’s Promise: The New Postbank Will Not Be “Another VBS”

In a direct address to the ghosts of South Africa’s banking past, President Cyril Ramaphosa has stood before Parliament and made a firm commitment: the soon-to-be-launched state-owned Postbank will not become “another VBS.”

The promise came during a question session in the National Assembly on Tuesday, where the President fielded queries on the government’s plan to establish a fully-fledged, government-owned commercial bank. The shadow of the looting and catastrophic collapse of VBS Mutual Bank loomed large over the discussion.

The Crucial Difference: Regulation and Registration

President Ramaphosa drew a critical distinction between the doomed VBS and the proposed Postbank. He pointed out that VBS was not a registered commercial bank before it was pillaged, operating in a regulatory grey area that allowed for the massive fraud that ultimately consumed it.

“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,” Ramaphosa stated.

The new Postbank, he assured, will be subject to the stringent, multi-layered conditions of the South African Reserve Bank’s (SARB) Prudential Authority. This regulatory environment is governed by a web of laws designed specifically to ensure banks remain compliant, solvent, and trustworthy.

The Hurdles Still to Clear: Money and Approval

However, the President was careful to temper expectations with reality. The Postbank is not yet a bank. Ramaphosa clearly outlined that two major hurdles remain before it can function commercially:

1. Capital: The bank still needs to be adequately funded.

2. Licence: It must receive the proper approval and a licence from the SARB’s Prudential Authority.

“The Postbank must still clear a few compliance hurdles before it can establish itself as South Africa’s government-owned commercial bank,” he said, emphasizing that this rigorous process is precisely what will “ensure the industry involves the correct people.”

This is a deliberate message to both the market and the public: the government will not cut corners. The slow, often frustrating pace of regulation is being framed not as a delay, but as a necessary safeguard a firewall against the kind of mismanagement and corruption that destroyed VBS and eroded public trust.

The President’s assurances are a direct attempt to preempt public fear and political criticism. By invoking the name “VBS,” he acknowledges the deep scars left on the national psyche and tries to build confidence that the state has learned a costly lesson. The success of the Postbank will depend entirely on whether these promises of stringent oversight are kept.