Postbank banking licence could take up to three years, minister says

Postbank’s application for a full commercial banking licence could take between two and three years to complete, according to a written parliamentary reply from Minister of Communications and Digital Technologies Solly Malatsi.

Outstanding requirements prolong process

Malatsi said the licence process is progressing under Section 12 of the Banks Act, 1990, but remains dependent on the completion of several regulatory, governance and capitalisation requirements. He listed a number of outstanding steps that must be finalised before approval can be secured.

These include the establishment and operationalisation of a Postbank bank controlling company, the appointment of its board and the finalisation of related shareholder governance arrangements. Postbank must also be recapitalised to meet prudential capital requirements and to support modernisation of its technology and infrastructure, Malatsi said.

Regulatory conditions and recapitalisation

Malatsi said Postbank still needs to close the remaining regulatory conditions issued by the Prudential Authority. He added that recapitalisation is a key requirement for the banking-licence process.

Through the department, Postbank has requested shareholder capital support for consideration by National Treasury during the 2027/2028 MTEF period, Malatsi said. He said the recapitalisation is necessary both to meet regulatory capital adequacy requirements and to support implementation of Postbank’s banking infrastructure strategy.

Timeline and safeguards for social grant payments

Malatsi told Parliament that Postbank expects the licensing process to take between two and three years once the outstanding requirements have been addressed and necessary regulatory approvals obtained.

On the potential impact on social grant payments, Malatsi said the government is working to ensure payments continue without disruption. He said Postbank and SASSA continue to work together to ensure that grant payments are not disrupted during the card replacement process while engagements regarding the MSA are concluded.

Parliamentary question

The minister’s reply followed a question from African National Congress MP Shaik Imraan Subrathie asking about the status of the licensing process and measures to prevent further payment failures.