CREDIT CRITERIA
Postbank must lend with prudence and steer clear of politics
Owning a banking licence will only take the Postbank so far, but does not guarantee profitability
The ANC’s national policy conference came and went in July without any concrete evidence of a broad policy shift. However, one outcome that raised eyebrows was the decision to continue to convert the Postbank from a deposit-taking institution into a state-owned credit provider. Given the government’s poor performance in running and overseeing state-owned enterprises, concerns have been aired that this venture is just another fiscal drag in the making. But it does not have to be that way. Like any new prospective entrant into the banking sector, rigorous licensing criteria will need to be met. Provided the Postbank makes the cut, it can make a positive contribution to economic development if it lends profitably and can steer clear of political meddling. SA is often seen as having a low level of financial inclusion. But this notion is misleading. The latest data from the World Bank show that 26-million adults had a bank account in 2014, which, although still not enough, compares with ...
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