South Africa’s biggest banks in the hot seat
Representatives from South Africa’s main banks will appear in parliament next month to explain their lending practices amid criticism that they unfairly discriminate against small businesses and those from lower-income groups that seek financing.
The Banking Association of South Africa and lenders Absa, Capitec, Investec, Nedbank, Standard Bank and FirstRand’s FNB unit will send officials to the meeting with parliament’s trade and finance committees on Feb. 4, parliament said in a statement on Friday.
“The meeting is to ensure that the banking sector in South Africa is open, transparent and of service to poor people to facilitate inclusion in the productive sectors of the economy,” Mzwandile Masina, the chairman of the trade committee, said in the statement.
Banks make it easier to secure credit for consumption purposes than for production, an approach that “is disempowering, particularly for previously disadvantaged people,” he said.
The committees also intend to hold talks with the Financial Sector Conduct Authority to discuss the state of banking in South Africa, the industry’s credit profile, bank charges and other matters, according to the statement.
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