SA banks face Parliamentary grilling over collusion, anti-competitive practices and racial bias

South Africa’s major banks are set to appear before Parliament’s Portfolio Committee on Trade and Industry today amid mounting allegations of collusion, discriminatory behavior targeting Black-owned businesses, and anti-competitive practices.

The Portfolio Committee on Trade, Industry and Competition, and the Standing Committee on Finance are holding a joint-meeting in which all major banks will appear before them on Tuesday.

The South African Reserve Bank, Prudential Authority Institute, Financial Sector Conduct Authority, Banking Association South Africa, Standard, FNB, ABSA, Investec, Nedbank, and Capitec are all present at the meeting.

Chairperson of the Standing Committee on Finance, Dr Joe Maswanganyi who is chairing the meeting said this engagement was an issue of paramount and national importance as it pertains directly to the foundational tenants of inclusive economic growth, equitable financial participation, and the broader transformation objectives enshrined in the Constitution.

He said the committees have resolved to address pressing matters of public interest within the banking sector.

“We are meeting here today to engage the banking sector.”

Maswanganyi said while the banks are acknowledged for their strides in inclusivity over the years, the pace of progress has been slow. He also stated that most black-owned and previously marginalised persons remain prejudiced by the banking sector as they continue to fall short of the benchmarks in order to received financial services/assistance.

Maswanganyi said: “The findings by the BBBEE committee in 2022 revealed concerning statistics. Black ownership in the financial sector exhibited a multi-decline. Management within the sector remain largely untransformed with black professionals occupying less than 20% of executive roles,” he said.

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