Related Articles
Top Stories
May 23 2012 18:03
Facebook and banks are being sued by Facebook's shareholders, who claimed the defendants hid Facebook's weakened growth forecasts ahead of its initial public offering.
May 23 2012 15:59
Finance Minister Pravin Gordhan has made an unusual appeal to the Constitutional Court in a bid to set aside the high court order halting e-tolling.
May 23 2012 22:00
Economic liberation or the lack thereof is the most divisive issue in the country, according to a survey.
Johannesburg - Finance Minister Pravin Gordhan said in parliament on Wednesday he intends to meet with the CEOs of major banks in coming weeks about bank charges.
In particular, he said while delivering his Budget speech, he will discuss firm deadlines to respond to the recommendations of the banking enquiry panel of the Competition Commission.
The minister told MPs that though South Africa was spared the worst of the global financial crisis the banking industry must not become complacent.
He acknowledged the governance and risk management systems of South Africa's banks, which proved effective during the global crisis.
Nevertheless, Gordhan said he wanted to highlight several new initiatives to improve the regulatory system. He listed them, saying: "The framework for accountability, co-ordination and performance of our financial regulators needs to be strengthened. A formal council of regulators may be instituted to serve this purpose. We are reviewing our adherence to global regulatory standards in banking, insurance and securities markets.
"Various changes to the Basel II framework will be effected once the impact assessment is completed. We will be expanding the scope of regulation to include hedge funds, private equity and credit ratings agencies. We will improve our crisis contingency plans. We will strengthen enforcement mechanisms to counter abuse."
Gordhan said that building on the 2009 exchange control announcements in the medium term budget policy statement, the broad strategy on exchange control reform remains the prudential management of foreign exposure risk.
"In line with this approach," the minister said, "government has now finalised reporting measures for prudential foreign exposure limits on banks, which will be introduced at 25% of their total liabilities.
"In addition, treasury will shortly release a framework document to facilitate consultations on reforming exchange control legislation. Our aim is to modernise our policy on inward and outward investment and complete a framework for prudential regulation of foreign exposure for institutional investors."
- I-Net Bridge