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South Africa’s leading banks are set to appear before parliament next month to address allegations of discriminatory lending practices that reportedly disadvantage small businesses and lower-income groups seeking financing.
The Banking Association of South Africa, along with representatives from Absa, Capitec, Investec, Nedbank, Standard Bank, and FirstRand’s FNB unit, will attend a meeting with parliament’s trade and finance committees on February 4, 2025, according to a statement issued on Friday.
“The meeting is to ensure that the banking sector in South Africa is open, transparent, and of service to poor people to facilitate inclusion in the productive sectors of the economy,” said Mzwandile Masina, chairman of the trade committee.
Masina criticized banks for prioritizing credit for consumption over production, describing the approach as “disempowering, particularly for previously disadvantaged people.”
The committees also plan to engage with the Financial Sector Conduct Authority (FSCA) to discuss the state of banking in South Africa, including credit access, bank charges, and the sector’s overall credit profile, the statement added.
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