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Cape Town - The government will apply for a full banking licence for its postal bank by year-end, the communications minister said on Monday, a move that will increase competition in the banking sector.
The country’s banking sector is dominated by the so-called “Big Four” banks, Standard Bank , Absa , Nedbank and FirstRand .
“I am confident ... that Postbank will be able to lodge its application for license by December 2011,” communications minister Radhakrishna ’Roy’ Padayachie said.
The Postbank currently offers savings accounts and investment products, but does not offer a full range of retail banking.
Padayachie said Postbank had received VISA membership and was on the verge of finalising its lending, borrowing and investment policies.
Its restructuring is part of a government move to provide a wider range of financial services products to those without bank accounts and low-income earners.
Postbank has the biggest share of low-cost “Mzansi” accounts, introduced in 2004 to extend banking services to the poor.
The country’s banking sector is dominated by the so-called “Big Four” banks, Standard Bank , Absa , Nedbank and FirstRand .
“I am confident ... that Postbank will be able to lodge its application for license by December 2011,” communications minister Radhakrishna ’Roy’ Padayachie said.
The Postbank currently offers savings accounts and investment products, but does not offer a full range of retail banking.
Padayachie said Postbank had received VISA membership and was on the verge of finalising its lending, borrowing and investment policies.
Its restructuring is part of a government move to provide a wider range of financial services products to those without bank accounts and low-income earners.
Postbank has the biggest share of low-cost “Mzansi” accounts, introduced in 2004 to extend banking services to the poor.
