Fin24

Marcus: Huge trust in SA banks

2012-10-10 15:04

Johannesburg - South Africa's banking system is in a stable condition, amid a worldwide distrust of finance institutions, SA Reserve Bank governor Gill Marcus said on Wednesday.

"It is important to stress that, without being complacent, the South African banking system remains sound and well capitalised," she said in a speech prepared for delivery in Grahamstown.

"The South African authorities have not had to assist any bank, nor provide liquidity to prop up the system."

She said the global financial crisis had led many to become distrustful of banks or financial systems.

"The anger that has been exhibited against the banking sector in various countries, for example the on-going 'Occupy Wall Street' campaign, is indicative of a lack of trust in the financial system.

"Our banking system was one of the few that emerged relatively unscathed from the crisis."

She said the importance of trusting in a financial system could not be over-emphasised.

"Without it the financial system breaks down, and without an efficiently working financial system, the economy will not operate effectively," Marcus said.

"A lack of trust in banks or in financial markets can undermine the system as a whole. If clients do not trust their banks they will not borrow from them, [and] if banks do not trust their customers they will not lend to them."

* Follow Fin24 on Twitter and Facebook.

Comments
  • afrikeni - 2012-10-10 15:32

    Because maybe one of the few banks in the world that charges for everything even when client is depositing money with the bank

  • norman.depluhm - 2012-10-10 15:33

    Who are we supposed to trust Gill? You? I think you'll find people's distrust in the global financial system is pretty well placed. I understand that it is so far down the road that to untangle the mess would result in major ripples, nay tidal waves, of economic mayhem, but enough is enough already. The fractional reserve banking system, fiat currencies, and poor regulation are all to blame, fairly and squarely. Cut the crap, the world is not as rich as we think we are...

      abrie.jurgens - 2012-10-10 16:18

      And securitization!

      zubair.patel.77 - 2012-10-10 16:42

      I agree. Fiat currencies and the centralized banking systems of the world are the problem. Fractional reserve banking is a joke. We must tackle our structures now before it's too late.

  • justice.league.9469 - 2012-10-10 15:38

    Sorry I don't trust our banking systems on grounds of overcharging for admin fees. R14 for a external debit order is insane! There is no teller involved in the transaction:

      craig.m.fulton - 2012-10-10 16:40

      Our banks strong financial position and stability is from those high transactions fees. This reduced banks dependence on revenue from interest on loans. Ironically, we could have maybe been in the same situations as some of those foreign banks if our weren't such profiteers.

  • Gatvol Griet - 2012-10-10 16:39

    Get real Gill, SA banks rob us blind with charges, interest and fees, as well as a myriad of useless products that pay not one cent when you try and use them! Steal R10 from 20million people in a month and you've got R200million in a flash! And just end up losing your job and see how costs are heaped up when you can't pay!!! Gill, you are taking as fat a chance as the ANC regime!!!

      trevor.myburgh.12 - 2012-10-10 16:50

      When she does loose her job she will get a small package of R30mil or so and a small pension of a mil a month

  • theMichaelHawthorne - 2012-10-10 17:09

    R12.41 per litre doenst seem very stable to me.

  • arthur.salvado - 2012-10-11 07:58

    Dream on Gil. You had your point scoring say, it sounds pretty. It it's a load of rubbish. The banks have long joined the free for all meaning ........rob as much as you can but avoid he Sunday papers and 702. It's about time banks are seriously looked into and then Gil, you can have your say. Deal?

  • Akshay Patel - 2013-03-17 03:46

    why is it nobody knows who owns SARB? one would think it is owned by our country.. we currently own R100 billion to SARB just in interest. you talk about trust but there is so much secrecy circling SARB.

  • pages:
  • 1