Finance Minister Enoch Godongwana says the government does not have the financial resources to inject into a new state bank.
Finance Minister Enoch Godongwana has ruled out the establishment of yet another state-owned bank, saying South Africa not only has quite a number but the government does not have the financial resources to inject into a new one.
“The government currently does not have plans to establish a new state-owned commercial bank. South Africa currently has several state banks, including the Land Bank, the Postbank, the Development Bank of Southern Africa, the Small Enterprise Development and Finance Agency, and other national and provincial Development Finance Institutions,” Godongwana said.
The Postbank, which falls under the Department of Communications and Digital Technologies, is still in the process of finalising its application for a banking licence with the South African Reserve Bank’s Prudential Authority.
He was responding to parliamentary questions from MK Party MP Zwelakhe Mthethwa on Tuesday, who observed that there are stringent requirements set by the banking industry to qualify for funding.
