20 Dec.
Postbank has moved the submission of its banking licence to the Reserve Bank to early next year, but hopes to start operating as a fully fledged bank by the third quarter of 2012.
Postbank has moved the submission of its banking licence to the Reserve Bank to early next year, but hopes to start operating as a fully fledged bank by the third quarter of 2012.
In August, former communications minister Roy Padayachie said he was confident Postbank would lodge its application for a licence by the end of this month.
But Postbank’s new chief operating officer and acting MD, Shaheen Adam, said the process had been delayed and Postbank had met Reserve Bank officials to ensure that everything would be done properly.
“We are still on track for 2012. We have deferred it and said we want to do the right thing. We want to make sure there aren’t any concerns,” Mr Adam said.
“We had to do a scoping exercise to determine what was needed for the licence. We also needed to make sure we have additional capital. The minister is in the process of appointing someone to validate our assets and liabilities.”
The Reserve Bank confirmed the talks. “We have had discussions with their auditors, but we have not received an application in writing,” deputy registrar of banks Michael Blackbeard said.
Mr Blackbeard could not give a time line for the Reserve Bank to decide on Postbank ’s licence, saying the central bank also dealt with other applications.
The se included applications from foreign banks with institutional jurisdictions looking to open branches in SA. He could not say whether these banks were to open retail or investment banking branches, saying announcements would be made next year.
The Department of Communications has yet to announce the names of people considered for appointment as nonexecutive directors of Postbank.
Postbank is seen as part of the solution to help bring financial services to the excluded. Many see it as a potential and formidable competitor in the low end of the market because of the widespread network of the Post Office.
Mr Adam said despite the delay, Postbank had made progress. ” We have obtained a provisional membership with Pasa (Payments Association of SA) about a week ago. We have also obtained Visa membership.”
Postbank had just more than R6bn in deposits and 4,5-million active customers, Mr Adam said. “If you look at our deposit growth, there has not been a single year where it has fallen. We have been averaging a 10% growth rate over the last four years.”
Source: Business Day
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