The Herald (South Africa)

ANC delegates push for state bank

Government given ultimatum to ensure new facility is up and running in six months

- Qaanitah Hunter

ANC delegates have given the government an ultimatum to ensure that a state bank is up and running within six months. This comes a week after Post Bank filed its applicatio­n for a commercial banking licence with the South African Reserve Bank.

Telecommun­ications Minister Siyabonga Cwele said party delegates wanted the bank set up as soon as possible but “the ball is in the court of the Reserve Bank”.

“They want it tomorrow. The key thing is‚ we want it tomorrow too, there is no one that does not want it. Let’s give a chance to the Reserve Bank‚” he said.

“I am quite confident that the Reserve Bank is profession­al enough.

“It is able to process the applicatio­n in an expeditiou­s manner.

“We can’t say tomorrow. We don’t want a short cut.

“We want it to be done properly, but expeditiou­sly.”

Yesterday‚ commission­s heard heated calls for the establishm­ent of the state-owned bank in the form of the Post Bank‚ which the ANC resolved to do more than 10 years ago.

Insiders said delegates demanded that the bank be given a developmen­t agenda aimed at providing services to South Africans who were excluded from the commercial banking sector.

The minister revealed that the government had met the deadline from the Reserve Bank to submit the banking applicatio­n licence last week and hoped to get an outcome soon.

“We had specific requiremen­ts we had to heed within 12 months and submit a final applicatio­n,” Cwele said.

“The deadline was July 4 to the Reserve Bank. We met that deadline. We submitted on June 27.”

Cwele said the Post Bank was one step closer to being registered as a commercial bank.

The government establishe­d the bank’s controllin­g company earlier this year and appointed the inaugural board to get the bank off the ground.

He said the government had worked to comply with the Reserve Bank while his department was working with the national Treasury to amend the Banking Act to allow a stateowned company to operate a bank.

“In short, we have done all that is required‚” Cwele said.

He said growing calls for the establishm­ent of the Post Bank proved there was a need for it in the South African economy and vowed to shield the bank from any political pressure.

“Interferen­ce is bad. All we have to do as a shareholde­r is to give [the bank] a mandate,” Cwele said.

“The mandate is that this bank must serve those who are unbanked and must not lend recklessly‚ so that it is sustainabl­e.

“Once you have done that‚ leave it to the board and the management.”

Cwele said scepticism from the banking sector on the state-owned bank was unwarrante­d. – TimesLIVE

 ??  ?? SIYABONGA CWELE
SIYABONGA CWELE

Newspapers in English

Newspapers from South Africa