Postbank has been directed to submit a new application for authorisation to establish a bank in terms of section 12 of the Banks Act of 1990.
This, following engagements with the Prudential Authority (PA), according to a Parliamentary reply to ANC MP Mzoleli Mrara’s question about theinstitution’s application to be a registered bank.
Postbank is one of the 11 entities under the Department of Communications and Digital Technologies (DCDT) portfolio, which is led by minister Solly Malatsi.
Postbank does not offer mainstream banking products as it is not yet a registered bank, so a banking licence will allow the institution to operate as a fully-fledged state-owned bank.
The latest Parliamentary reply sheds light on where government is in realising its aspirations for the Postbank.
Responding to Mrara, Malatsi says his department has informed him that Postbank is undertaking the “necessary” preparatory work, including engagements with the PA and addressing the outstanding requirements for its application.
“The application has not yet been submitted. No definitive submission date can presently be provided, as the process remains subject to the applicable legislative, prudential, governance and regulatory requirements.
“The principal outstanding requirements include the recapitalisation of Postbank, modernisation of its banking systems, establishment of the Bank Controlling Company and its board, and compliance with the applicable prudential and regulatory requirements.”
According to the minister, the DCDT, in its capacity as shareholder, continues to support the recapitalisation of Postbank.
Resultantly, a request for recapitalisation has been submitted to National Treasury and remains under consideration, he states.
“The process of establishing the Postbank Bank Controlling Company and appointing its board is underway, subject to the necessary governance and approval processes. Postbank has a permanent chief executive officer and a full complement of executive management, except for the chief financial officer position, for which the appointment process is underway.
“As at September 2026, Postbank facilitated social grant payments to approximately 1.9 million beneficiaries.”
Given government’s poor track record of running state-owned enterprises, questions have been raised as to how it would efficiently run a state bank.
However, last year, president Cyril Ramaphosa reiterated government’s commitment to support the Postbank to obtain its licence, saying it’s meant to extend affordable banking services to underserved communities, small businesses, and youth- and women-owned enterprises.
Despite a challenged history, in May 2022, the DCDT moved ahead and tabled the South African Postbank Amendment Bill to the National Assembly, bringing government’s plans to transition the Postbank into a full-service bank a step closer.
The Bill, tabled by former communications minister Khumbudzo Ntshavheni, would add and amend definitions in the South African Postbank Act, to allow the Postbank to function as a separate entity to the South African Post Office (SAPO).
The Bill would pave a way for the setting up of a Bank Controlling Company, which would serve as a holding company for the bank, and the shareholding of Postbank to be transferred from SAPO to government.
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