Cape Town – The objectives of ownership and transformation set out in the Financial Sector Charter are not ambitious enough and should be “sharpened and refined”, said Ismail Momoniat, deputy director general at National Treasury.
Momoniat was part of a delegation who made a submission at a joint meeting of the portfolio committee on trade and industry and the standing committee on finance where stakeholders in the financial services sector are making representations on transformation in the industry.
The input given by stakeholders includes comments on deracialisation, a high level of monopoly and progress on the implementation of the Financial Sector Charter.
Momoniat said that a Financial Sector Summit, which will be held in June or July this year, will provide an opportunity for stakeholders to revisit the sectoral targets for transformation.
He said transformation in the financial sector means “different things to different people”.
“We as National Treasury are looking at deracialising the sector so that ownership and management are more reflective of black South Africans.
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“It also means better access to small black businesses as far as procurement is concerned and better access to banking services so as to help promote the asset wealth of most households in South Africa.”
Momoniat said transformation in the banking sector also includes meeting South Africa’s developmental objectives, such as the funding of infrastructure projects.
“The question is: how do we move away from where we are?”
He said the sector needs to move away from bad practices and help South Africans save, borrow and transact. “It must be mass-based and sustainable.”
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