Parliament set to meet banking sector on Tuesday over lending practices
The joint meeting of the Trade and Industry Committee and the Standing Committee on Finance is expected to engage the banking sector on competition and the provision of credit for productive activities.
Bank building generic, 123rf.com
CAPE TOWN - The much-anticipated meeting between Parliament and the banking sector is set to take place on Tuesday.
The joint meeting of the Trade and Industry Committee and the Standing Committee on Finance is expected to engage the banking sector on competition and the provision of credit for productive activities.
The committees called for the meeting in 2024 before several major banks agreed to meet.
Trade Industry and Competition Committee chairperson, Mzwandile Masina, said in January that Tuesday’s meeting with major banks about their lending practices was not about being hostile towards the sector.
Masina emphasised that the meeting would be more of a fact-finding meeting on bank practices when it comes to giving loans to clients.
He added that the Banking Association of South Africa and the major banks Absa, Capitec, FNB, Investec, Nedbank and Standard Bank had confirmed their attendance.
One of the patterns he pointed out that raised concern was the easy access to "consumption credit" to buy things like cars and houses.
Masina added the credit doesn’t extend to starting a business, saying the lending approach was disempowering.
He said transformation in the sector would also form part of discussions.