SA's major banks to appear before Parly on credit lending practices

CAPE TOWN - The country's biggest banks will appear before Parliament next month to account for their credit lending practices. 

The portfolio committee on Trade, Industry and Competition as well as the Standing Committee on Finance will meet with the major banks in February where they can expect a grilling from members. 

Trade, Industry and Competition Committee chairperson Mzwandile Masina said they want to understand the banks' "credit lending practices for production and consumption purposes" and progress in contributing towards transformation of the economy. 

Masina said the meeting with the banks is a fact-finding mission informed by observations made by the two committees following their meeting with the National Credit Regulator, National Treasury and the Competition Commission late last year. 

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

He said the Banking Association of South Africa and the major banks Absa, Capitec, FNB, Investec, Nedbank and Standard Bank have confirmed their attendance. 

"We were noticing patterns that in the main, it was easy to access consumption credit for you to buy a car and to buy a house."

But Masina said this credit doesn’t extend to starting a business - saying this lending approach is disempowering. 

"We have a responsibility on behalf of the people to call these banks so that we can get to understand."

Masina said the meeting is to ensure that the banking sector in South Africa is "open, transparent and of service" to the poor.