Postbank's acting MD Shaheen Adam on Monday, 28 May 2012, said that the bank would submit its licence application to the Reserve Bank only by the end of the year.
Former communications minister Roy Padayachie, who died earlier this month, had wanted Postbank to submit its application by December last year, but it was delayed to the first quarter of this year. It was then hoped Postbank would start operating by the third quarter.
The earlier delay was to ensure that everything would be done properly, including a scoping exercise.
Postbank is seen as part of the solution to help bring financial services to excluded citizens. 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. However, this has now become a dream deferred.
"[We are] looking at submitting later in 2012," Adam said.
"It takes between 15 and 24 months to get a licence from the date of submitting the intention to apply for a banking licence."
He said before the application was submitted at the end of this year a number of factors needed to be in place, including the board.
Adam said that in accordance with the Postbank Act, the bank would have 10 board members made up of about nine nonexecutive directors, including two from the Post Office.
Asked about Postbank's capital position, Adam said it was sufficiently capitalised for its existing business from a regulatory perspective. "[We] will need to raise capital if we start engaging in new markets and businesses and will also need to invest in IT and infrastructure."
Adam said Postbank had about 5-million customers and held about R4,3bn in deposits.
He said that in terms of progress, Postbank had already obtained a provisional membership with the Payments Association of SA and card operator Visa.
Source: Business Day
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