ANC challenges 'monopolistic behaviour' of banks

The ANC’s call for the fundamental transformation of the financial sector was not meant to collapse the banking system but to change "monopolistic behaviour"‚ Telecommunications and Postal Services Minister Siyabonga Cwele said on Wednesday.

Speaking in Parliament during the debate on President Jacob Zuma’s State of the Nation Address‚ Cwele said there was a need to review the financial sector charter in relation to access to finance for small and informal businesses as well as financial inclusion‚ affordability and bank charges.

• Big banks accused of currency fiddlesThree of the biggest South African banks - Standard, Absa and Investec - and 14 foreign-owned banks have been referred to the Competition Tribunal accused of price-fixing.

The ANC had been calling for the opening of space for a variety of sector-specific banks or second-tier banks such as a construction bank‚ stokvels‚ co-operative banks and state banks to improve access and affordability to support inclusive growth‚ he said.

• SA Reserve Bank welcomes price fixing probe into banksThe South African Reserve Bank (SARB) has welcomed Wednesday's decision by the Competition Commission to refer local and foreign owned banks to the Competition Tribunal for price fixing.

Zuma’s address last week largely focused on "radical economic transformation"‚ including changing patterns of ownership. During Friday’s TNA business breakfast‚ sponsored by Gupta-owned newspaper The New Age‚ the president raised concern about the "monopoly" held by South Africa’s four big banks. He said more banks were needed so that transformation of the economy could take place.

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