Postbank has been registered as a licensed financial services provider with the Financial Sector Conduct Authority.
The licence, issued under the Financial Advisory and Intermediary Services Act, authorises Postbank to provide financial advice and intermediary services relating to financial products within a regulated framework.
In a statement, communications deputy minister Mondli Gungubele and Parliament’s portfolio committee chairperson Khusela Sangoni-Diko welcomed the move.
Gungubele says the milestone reflects progress in rebuilding Postbank into a “sustainable and well-governed state-owned retail bank”, for serving the needs of the unbanked and partnering government financial services to citizens.
“The granting of this licence is an important regulatory milestone for Postbank and a strong signal of the progress being made to stabilise and strengthen the institution. It demonstrates that Postbank is meeting the regulatory standards required to operate responsibly within South Africa’s financial sector.”
Similarly, Sangoni-Diko described the development as a milestone in the ongoing transformation of Postbank.
“The licensing of Postbank as a financial services provider signals that the institution is steadily meeting critical regulatory requirements and strengthening its capacity to operate within South Africa’s financial sector.
“As the committee, we have consistently emphasised the importance of strong governance, accountability and regulatory compliance. This milestone demonstrates that Postbank is moving in the right direction and lays a solid foundation for its evolution into a fully-fledged state-owned bank.”
Postbank is one of the 11 entities in the portfolio of the Department of Communications and Digital Technologies, with the state looking to the entity to play a crucial role in the economic transformation of SA.
Last year, president Cyril Ramaphosa revealed Postbank was “not yet in a position” to be granted a full commercial banking licence.
Gungubele states the latest move supports Postbank’s longer-term vision of obtaining a full commercial banking licence from the South African Reserve Bank through its prudential regulator, the Prudential Authority.
“This achievement represents another important step in Postbank’s long-term journey towards becoming a fully-fledged commercial bank that serves the needs of South Africans, while contributing to the strength and stability of the country’s financial system.”
Sangoni-Diko stressed that more work remains to be done to secure a full banking licence and achieve operational readiness, adding that she looks forward to further progress in the establishment of a state-owned bank that serves the country’s developmental needs.
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