Postbank is a step closer to becoming a fully fledged bank after submitting a final application for a full banking licence to the Reserve Bank last week.
Post Office CEO Mark Barnes said on Friday the bank was now closer to registration as a bank and offering a "wider range of products and services, which includes loans."
The section 16 application in terms of the Banks Act was submitted by Postbank to the Reserve Bank last Monday.
"The Bank will determine the date for issuing the Postbank licence in due course," he said.
Postbank plans to lend to the informal economy, to spaza shops and homeowners without title deeds who battle to borrow from traditional lenders.
About a month ago, Parliament heard that Postbank, which has primarily been deposit-taking, was keen to assist in the payment of social grants through its nationwide infrastructure footprint. Postbank already has established payment channels.
Postbank had R2.7bn in reserve capital, Barnes told Business Day recently.
Postbank, insurer Discovery and Tyme, a company that builds and operates digital banking systems, were the applicants that received new provisional banking licences in 2016.
Discovery confirmed this week it was still on track to launch in 2018. While not commenting on outstanding conditions to fulfil the bank said in an e-mailed response, “Discovery has a period of 12 months to fulfil the said conditions and obtain its final approval in terms of Section 17 of the Banks Act.” The 12 months is calculated from the date of the initial authorisation from the registrar of banks in October 2016.
Reserve Bank deputy governor and registrar of banks Kuben Naidoo said last week while the Postbank had now complied with requirements it may take “many months” to process the final application but still the bank Boped to issue formal licences during 2017 or 2018.
But in the meantime, the bank expected more new applications for banking licences.
In the interview, he said technology was lowering the cost of banking and there were many new entrants who believed the barriers to entry were now reduced.
“I’m sure that we’ll get a few more applications in the next two or three years. We would have to maintain very high prudential standards and intrusive supervision so that we don’t have a repeat of the small banking crisis that we’ve had in the past,” Naidoo said.
“A more diverse banking system and transformed banking system was necessary, he said adding, “even if you can’t diversify the system, that you encourage and incentivise competition in the system so that prices come down and consumers benefit.”
Meanwhile, Naidoo confirmed that the Reserve Bank is no longer considering an application for a Gupta-linked business to buy Habib Bank.
Vardospan abandoned its R450m quest after the share purchase agreement expired on March 31, this after Vardospan lost a High Court case to force the Central Bank and National Treasury to approve the sale.
Vardospan is controlled by Salim Essa, an associate of the Gupta family, friends of President Jacob Zuma, who are accused of orchestrating corrupt acts and capture of state institutions and funds.
“So there is nothing on the table today. There is no offer. There is nothing for us to adjudicate or decide,” Naidoo said.
Habib and Vardospan did not respond to requests for comment.
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