Move to convert Postbank into state-owned bank not viable - economist
A state-owned bank is simply not worth betting money on.
That's the analysis of Efficient Group chief economist Dawie Roodt.
This as government plans to convert Postbank into a full-service financial institution.
Communications Minister Khumbudzo Ntshavheni is preparing to introduce an amendment bill to Parliament that would see the shareholding being transferred from the SA Post Office to the government.
But Roodt believes government should keep its hands off it, given its track record in running institutions.
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"I don't think this is a good idea for them to create another institution that will be under the control of politicians eventually.
"Additionally to that, there are many private banks that are doing an excellent job in servicing, especially the poor in South Africa and that is what we need to do.
"We need to have more private sector participation and more competition amongst private sector financial institutions, and they will do a far better job than government in trying to serve the people of South Africa.”
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