Postbank stands to lose R3.5bn as Post Office pleads for business rescue

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Fate of Post Office raises question over plan to be a fully fledged bank

The future of Postbank’s plans to become a fully fledged bank may be under threat as it stands to lose R3.5bn if the Post Office is placed in business rescue, while its deposits have no protection in law.

But even as it stands to lose far more money than it has provided for in financial statements, insiders do not believe its deposits are at risk, even as the Treasury told Business Day it does not guarantee them...A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and TimesLive Premium.

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