MPs question SA Reserve Bank over 'manipulation' of the rand by major banks

CAPE TOWN - Members of Parliament have questioned the South African Reserve Bank (SARB) over the “manipulation” of the rand by major banks.

They were also critical of the lack of transformation in senior management and what some call “racial profiling” when it comes to extending credit.

On Tuesday, the banking sector was briefing a joint meeting between trade and industry and the standing committee on finance in Parliament.

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Major commercial banks and regulatory bodies within the sector finally appeared before Parliament to address several issues from transformation to competition.

Members also had a lot of questions for the SARB about the role of the major banks in manipulating the rand.

Trade, Industry and Competition Committee Chairperson Mzwandile Masina says the banks exonerated themselves.

"They wrote a report that basically says, 'we’ve not done anything wrong which probably was the basis for the court to come to the conclusion after the admission of some of the banks including Absa. We want to know from the government when did the Reserve Bank know of this issue of manipulation?'"

The standing committee on finance chair, Joe Maswanganyi, slammed banks for not transforming enough.

"Management control within the sector remains largely untransformed with black professionals occupying less than 20% of executive roles in larger financial institutions."

The Reserve Bank said it would respond to the many questions from MPs in writing or at a follow-up meeting.