Mboweni: State Bank must operate on business principles

In order to get the economy to grow.
Minister of Finance Tito Mboweni. Image: Supplied

Finance Minister Tito Mboweni has reiterated his support for the establishment of a state bank that would “operate on business principles … in order to get the economy to grow.”

Mboweni previously expressed his support for the state bank during the 2020 Budget Speech and more recently said that the “cry for a state bank is loud, clear and urgent” in a series of tweets. 

During last year’s budget speech, Mboweni said the state bank would be subject to the Banks Act and that it would have “an appropriate capital structure and performance parameters on investments and loan impairments.”

But in this year’s budget speech, presented in February, Mboweni made no mention of the establishment of the bank, focusing rather on government’s plans for fiscal consolidation in light of the country’s debt crisis.

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While responding to the debates by members of Parliament (MPs) in the National Assembly on the 2021 budget, Mboweni still insisted that the establishment of the bank is critical to economically support the country’s population. 

“In my view the African Bank offers a platform [for the state bank] because the PIC [ Public Investment Corporation] and the Reserve Bank own about 50% of the bank,” he said. 

Mboweni’s announcement follows the cabinet’s approval of the publication of the South African Postbank Amendment Bill for public comment in February. The Bill provides for the establishment of the South African Postbank Holding Company in terms of the Banks Act and is aimed at providing for the inclusion of financially-excluded members of the public to participate in economic activities.

The amendment also seeks to provide a facility for some of the government’s financial services. 

Controlling costs

Mboweni briefly responded to other issues expressed by MPs regarding the budget, such as the public wage bill, zero-based budgeting and the possible introduction of a universal basic income grant. 

The contentious state wage bill should “not be politicised,” according to Mboweni but should rather be carefully handled “so that we [public servants and government] come to an understanding” about how to deal with the matter. 

Public-sector unions have filed papers at the Constitutional Court which aim to overrule the Labour Appeal Court’s decision to dismiss their case to compel the government to implement the last leg of the 2018 agreement. Meanwhile, the state aims to reduce its spending by R264.9 billion over the next three years due to a freeze on public wages.

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The National Assembly adopted the finance committee’s reports on the budget on Wednesday. 

The success of the budget is largely premised on the successful ongoing wage negotiations between the government and public sector trade unions. The committee noted its concerns regarding the matter, given the government’s failure to make any wage bill savings despite its previous announcements. 

“The committees remain concerned that despite government’s efforts to support job creation, the rate of unemployment reached a record level in the last quarter of 2020, making it extremely difficult for the economy to absorb new entrants into the labour market – particularly the youth,” Parliament said in a statement.



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No No No…
The Government Sole Job is to create laws, regulate and enforce them, Business and Citizens will do the rest. They will both live and operate with in those confines and the true test of the quality of the laws will be showing in Economic Growth.

Had the State been Functional, Resourceful and Efficient then i would agree but they are not instead they have proven over and over again that they cannot run any business…

Its now a race to the bottom for the big five banks, Well Done Barclays for pulling out ahead of time.

When we have so many private banks in one of the most innovative and healthy banking systems in the world, where will the state bank find market share or a business opportunity? They will build a client base among individuals who were rejected by the commercial banks. Commercial banks are incentivised to grow their client base. They even spend millions on advertising every month. If they refuse your business, then you are a threat to the stability of the system.

This brings us to the point. The state bank will lead to the implosion of the banking system, causing hyperinflation, and will dump everyone in poverty. The biggest losers will be the clients of the state bank.

I nearly collapsed with laughter when i saw the headline!

Since when did the ANC ever run anything based on principle, and what do they know about business?

Let the private sector run the SOE’s, then perhaps you will understand what ethics and business acumen is all about..
You’ve run every Parastatal into the ground bankrupting them, including the Municipalities under your control, not to mention the comrades at VBS

It’s about time you stop trying to pull the wool over our eyes..We’re sick and tired of the stealing ,lies and deceit

Stop this constant talk and take action

You can start by locking up those who captured this country’s finances at the expense of us all


They have the Land Bank. The Land Bank is an SOE. We all know how that ended. Why will it be any different for the next “Land Bank”?

This state bank will enjoy the benefits of government contracts while the government taxes the private banks. They use their power to tax their competition to syphon off the profit margin from entrepreneurs, to support the bottom line for the state bank. This will simply create another feeding frenzy for connected cadres. We need to privatise SOE’s, we don’t need more of them.

VBS and post office were also supposed to provide banking services. Tito must believe the saying about third try being the luckiest.

As opposed to the ANC principles of Rob The Bank Dry.

A state Bank or any other State Institution does indeed work on Business Principles:
The Business Principles however bear no relation to Western Business Principles but are rather “emerging ” principles .
The Main Principle is to steal Whatever Possible in the shortest possible time .
They will get not a cent of my business !!!

“State bank must operate on business principles”

A State Bank, we already had one called VBS Mutual. A State Bank under ANC is going to go the same exact way. VBS is a good ex. of why a State Bank is a bad idea. Alternatively, all you have to do is look at how many ANC deployees have been caught and or exposed ‘recving gifts’, soliciting ‘donations’ or not so small ‘small interest free loans’ from those busy pillaging the nation in State Capture. With the auditing firms corruppted and sedated and the regulator out of too much dose of political profolol, and without anyone to watch them, the State Bank will rob all South Africans of their wealth. A license to print and steal money to sponsor whatever fantasies of political leaders and unsatiable appetites and endless lines of lineage.

Principle 1: BEE uber alles
Principle 2: Deployed cadres only

Have I missed anything?

“Business principles” from VBS bank??

Well the Land Bank is a State Bank. That’s been run into the ground so no reason to believe any other State bank won’t follow the same route.

VBS wasn’t far off being a “state bank” and that’s all been looted to extinction.

Nothing but dreams of plunder by the greedy ANC.

this state bank would likely have been the Guptas banker of last resort after all the normal banks terminated with them!


Ignoring being a haven for the corrupt : if this bank is going to be the lender of last resort (to facilitate policy where normal banks have declined on valid grounds) it will CERTAINLY incur enormous losses at the cost of taxpayers that by the way include the normal banks!

For the unbanked masses : fix Post Office bank to offer a nationally defined basic and free banking debit card account so that no person or business has any excuse to be paid grants in cash or to receive cash. We should try and get rid of the suitcases of cash entirely

Are there not enough commercial banks, asset financers, microlenders, loan sharks and every other institution that wants to lend out money? Why on earth does the state want to get involved in this flooded market?
(We all know the answer is to steal all of the money, but you have to give this scam some veneer of respectabity)

Mboweni also becoming part of the circus act.

…. It will operate like a normal business bank – well what’s wrong with the normal business banks in place already then……… Unless that’s just sugar coated bullshit and the banks main aim is voting buying at the tax payers expense.

Once again, more evidence that the ANCs’economic illiteracy has no limits keeps coming up from its own mouth. I guess the Industrial Development Corporation (IDC), the Land Bank , Postal Service Bank, National Youth Development Agency (NYDA), Small Enterprises Development Agency (SEDA), Development Bank of Southern Africa (DBSA) and too many others to count are not enough to destroy. Please can someone wake me up from this “Matrix” dystopia.

I don’t get what the point is. the state bank will lend to people with the following criteria:
1. Been rejected by a commercial bank?
2. Been rejected by a microlender?
3. Been rejected by all their friends and relatives?
4. ?????

What is the point? Are they just going to get funding from government, distribute to as many comrades, cadres and RET rats as possible, and then ‘lament’ the sorry state of affairs when called to account?


Now we asking for it!

Seems like the R1.5 Trillion was not enough to steal under Jacob Zumas Presidency… I understand that the theft was done under the table…

We now want to legalise the theft under a State Bank!
(Did Brian Molefe not confess that he wanted to create a bank at the State Capture Commission….. hint hint)

…. I just need to get my sorry back side out of SA…

Considering the comments passed on this article, it appears that no consideration is given to the sad uptake in the Covid Arrangement scheme? Surprising, the relaxed SARB regulations enabled commercial banks to be more successful in restructuring their books (obvious at the right price), than using the Covid allocation. This shows that the SARB regulations have been instrumental at suppressing SA development. SA has and had, other persistent crises’, than just Covid. If the regulation does not impact the banking system, why changed it? Maybe the commercial banks are parasitic on the existing economy momentum, until the parliament decide to change the required reformation called for. Next to health care, a lion share of our national budget has gone to education since jonks; what has happened to the nations’ education. What is the relevance you may ask? Think!

End of comments.




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  CPIThe Consumer Price Index (CPI) measures monthly changes in prices for a range of consumer products Jul 2022 7.40%
  CPI ex OERThe Consumer Price Index excluding Owners’ Equivalent Rent (CPI ex OER) measures monthly changes in prices for a range of consumer products excluding Owners’ equivalent rent that measures changes in the cost of owner-occupied housing Jul 2022 8.10%
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