Political pressure mounts for banking sector regulation in SA

HEATED calls for a body to regulate the practices of the country's banking sector, especially from political circles, have emerged once again.

- SIPHO JACK

They are dismayed with the wanton power that banks currently possess, which included cherry-picking which clients accounts could be shut without justification.

Parties such as the Economic Freedom Fighters (EFF) and Umkhonto WeSizwe Party (MKP) were very vocal about the establishment of a formal adjudication body to oversee banks.

The conversation resurfaced yet again after US President Donald Trump's plans to have their nation's banks powers reviewed for what he called "politicising or unlawful banking practices".

However, unlike the US, the South African Constitution does not give President Cyril Ramaphosa such leverage to regulate the powers of the country's banks, due process must be followed.

Earlier this year, the South African banks came under strong criticism focus at a Parliamentary standing committee on finance meeting.

The meeting focused on issues pertaining to competition, the provision of credit for productive activities, and transformation.