Banks to explain credit policies in Parliament
The country's major banks are going to be summoned before Parliament next year to explain their credit policies.
The Portfolio Committee on Trade, Industry and Competition says it wants details on how the five commercial lenders determine access to credit and what factors influence their decisions.
"We have identified the big five banks: Standard Bank, FNB, Absa, Nedbank and Investec. They just make unilateral laws that do not make sense. We also obviously have to hold them accountable for the charges they charge individuals and institutions of government," said chairperson Mzwandile Masina.
He spoke during a briefing on promoting inclusive economic growth in Cape Town on Monday.
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"They will be appearing before us so that we can have a conversation on the areas that need to be tightened."
Masina said because there are only a few commercial banks, it appears that they have significant control over who gets credit and what interest rates they charge.
"Our assessment after we met in the joint committee with the National Treasury is that consumption credit is easily available in South Africa. But credit for creating a business or productive funding is not available."
He says that they support the establishment of a state-owned bank but improvements need to be made to ensure its success.
