Parliament wants SA's major banks answerable to their policies in 2025

CAPE TOWN - The country’s five major commercial banks can expect to be called to Parliament in the new year to explain their credit and other policies.

The chairperson of Parliament’s Trade, Industry and Competition Committee - Mzwandile Masina - made the unusual announcement on Monday at a briefing on the work done by his committee since the start of the seventh administration.

Masina says some decisions taken by commercial banks seem inexplicable and warrant further probing.

While the Banking Association of South Africa makes occasional appearances before Parliament, individual banks are not usually known to appear before any of its committees.

But Masina says they have a lot of explaining to do if the economy is going to be transformed.

"Consumption credit is easily available in South Africa, but credit for creating a business or a productive funding is not available. Also, the banks just make unilateral laws that don’t make sense and we obviously also have to hold them accountable."

The banks that are on Parliament’s radar include Standard Bank, First National Bank, Nedbank, ABSA and Investec.

Masina claims they close bank accounts on a whim - and he’s also concerned about banking charges charged to the state.

"They decide how much interest is paid and how much is not paid, they decide who gets credit and who doesn’t get credit without explanation."

Masina says Parliament needs to better understand where the problems lie – so that it can better support industrial growth.