BASA and SA banks must be held accountable for lack of transformation

The Banking Association South Africa (BASA) and the country's major banks came under scrutiny in Parliament on Tuesday as lawmakers called for greater accountability over their failure to meet transformation targets.

The Portfolio Committee on Trade, Industry and Competition, alongside the Standing Committee on Finance, held a joint meeting demanding explanations from banks and financial regulators regarding ongoing concerns over ownership disparities, procurement imbalances, and inadequate financial support for Black-owned businesses.

Chairperson of the Standing Committee on Finance, Dr Joe Maswanganyi, emphasised the urgency of the matter, stating that the lack of meaningful transformation within the financial sector remains a significant barrier to economic inclusion.

“BASA, along with individual banks, must be held accountable for their shortcomings in transformation targets, especially regarding ownership, procurement, and financial support for Black-owned enterprises,” he said.

“It is essential that banks articulate tangible commitments extending beyond mere corporate statements.” 

Maswanganyi highlighted the findings of the 2022 BBBEE committee report, which revealed a concerning decline in Black ownership within the financial sector.

While acknowledging efforts made by banks in recent years, he criticised the slow pace of progress, warning that South Africa cannot afford a financial system that continues to exclude the majority of its population from mainstream economic participation.

The hearing, attended by representatives from the South African Reserve Bank, Prudential Authority Institute, Financial Sector Conduct Authority, Banking Association South Africa (BASA), and major financial institutions, served as a platform for Parliament to demand concrete action from banks on transformation and inclusive economic growth.

IOL