Will SA's big banks finally face accountability?

Source: Source: Pexels

The National Assembly’s Economics Cluster oversight committee, led by Mzwandile Masina, has conducted a review of the country’s financial sector, focusing particularly on the banking industry.

Key issues include the availability of consumption credit versus the lack of funding for business development, as well as banks’ unilateral decision-making on account closures, interest rates, and credit allocation, often without clear justification.

“One critical issue we raised — and we hope to address in the next quarter — is the need to call some of South Africa’s major banks to appear before the committee,” Parliament’s Trade, Industry and Competition Committee chairperson, Mzwandile Masina, said.

This concentration of power among a few dominant players, including the big five banks—Standard Bank, FNB, Absa, Nedbank, and Investec—has raised concerns about inefficiencies and inequities within the sector, Masina added.

In addition to these, he mentioned that the committee is also considering assessing banks such as Capitec, African Bank, Bidvest Bank, and Grindrod Bank.

In the coming months, the committee plans to engage directly with these financial giants, pushing for reforms that will enable a more equitable and productive financial landscape for South Africa’s economy, he said. Masina stated that the specific mechanism to facilitate this will be finalised to ensure the banks appear in the next quarter for these discussions.

Masina pointed out that, unlike South Africa, where a handful of players dominate, other major economies around the world have multiple banking institutions.

He emphasised the need to find a mechanism for collaboration to move South Africa forward, stating that the co-operation of the financial sector is crucial for driving the country’s economic growth.