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A second round of public hearings on transformation is under way in Parliament on Wednesday, where stakeholders will give input on progress made with black economic transformation according to the Financial Sector Charter codes, while others will point out aspects where real transformation is lacking.
READ THE PREVIEW: Transformation in financial sector under the spotlight
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22 Mar 2017
REPORT BY FIN24's MATTHEW LE CORDEUR: The National Empowerment Fund (NEF) has not approached Mercantile Bank or its holding company, Caixa Geral de Depositos (CGD), to express interest in purchasing Mercantile Bank, the bank announced.
FULL STORY: Mercantile responds to black bank takeover bid
22 Mar 2017
REPORT BY FIN24's LIESL PEYPER: Nedbank acknowledged that its workforce profiles at senior management level need to be more “demographically represented”, with a stronger focus on African employees.
FULL STORY: Nedbank CEO - We fared best among big 4 on transformation targets
22 Mar 2017
Black Management Forum: We need to dismantle the concentration of financial sector. Without that, we cannot see transformation.
22 Mar 2017
Black Management Forum calls for a judicial inquiry into racism in the financial services sector.
22 Mar 2017
Black Management Forum: The standing committee should engage with the DTI to recommend that the direct ownership must be 20% across the board in the financial services sector.
22 Mar 2017
Black Management Forum: Market concentration and collusion should be criminalised and people sent to jail.
22 Mar 2017
Black Management Forum: The once empowered, always empowered principle should be explicitly outlawed in the B-BBEE Act.
22 Mar 2017
Black Management Forum: The existence of sector codes and the Financial Sector Code is particular. We recommend that the standing committee must engage with the DTI and argue that if the FSC is to remain, it must be amended to meet or exceed the minimum requirements set by the B-BBEE Generic Codes.
22 Mar 2017
Nedbank CEO Mike Brown answered DA MP David Maynier’s
question as to whether Nedbank met with the ANC following the closure of the
Guptas’ bank accounts. Brown said: “Nedbank doesn’t refuse to meet people. We did
meet the ANC… What was discussed was nothing to do with individual accounts. We
spoke about regulations … and the case law around closing accounts.”
22 Mar 2017
FROM FIN24's LIESL PEYPER: It is not the aim of banking legislation to close the bank accounts of individuals and businesses, South African Reserve Bank (SARB) deputy governor Kuben Naidoo said on Wednesday. “The intent of the (Banking) Act is to not close accounts – banks do it as a last resort. The correct approach is for banks to manage risks and if they can’t manage those risks, they close the account. It shouldn’t be standard practice – it’s a last resort.”
FULL STORY: Banks close accounts as last resort - SARB's Naidoo
22 Mar 2017
MPs concur that Nedbank is the best out of SA's top four banks with regard to transformation.
22 Mar 2017
Brown on challenges with transformation: Improving work force profiles particularly at senior management level to be more demographically represented.
22 Mar 2017
Brown on challenges with transformation: More work needed to prevent discounting on priority elements of new scorecards.
22 Mar 2017
Brown on challenges with transformation: Stricter targets across the codes will lead to lower B-BBEE levels.
22 Mar 2017
Brown on key learnings on transformation: Adopt a holistic approach, have resilience as this is a longer-term journey that is also influenced by the rapidly changing environment.
22 Mar 2017
Brown: We have a lot more to do, based on the lessons learnt up to date. "Transformation must happen from the inside out - this requires vision, values and structural alignment."
22 Mar 2017
Brown: Nedbank has total measured black shareholding of 37.55% and black women shareholding of 17.39% based on our 2016 FSC verified score by SizweNtsalubaGobodo.
22 Mar 2017
Brown: The Nedbank B-BBEE Eyethu scheme unlocked R8.2bn in realised value for more than 500 000 SA shareholders.
22 Mar 2017
REPORT FROM FIN24's LEISL PEYPER: National Empowerment Fund (NEF) CEO Philisiwe Mthethwa said the fund is considing an offer of R12.2bn for Mercantile Bank, which has recently announced it would be selling its South African bank.
FULL STORY: National Empowerment Fund mulling offer to create black-owned bank
22 Mar 2017
The National
Apex Cooperative of SA wants to be given mandate to change the structure and legislation for a national cooperative bank to be established.
22 Mar 2017
Ngutshane: A lot of our people are blacklisted. We could relax some of these requirements.
22 Mar 2017
Ngutshane: Cooperative bank will give commercial banks a run for their money. It will offer everything they offer. But its members will own the bank.
22 Mar 2017
Ngutshane: We are advocating for a national cooperative bank, not a black bank. It will essentially serve your middle class and will do little for the impoverished in the country.
22 Mar 2017
Ngutshane: Currently cooperative banks are glorified stokvels. We need to change the model.
22 Mar 2017
National
Apex Cooperative of SA President Ann Ngutshane is now presenting: "They will never transform. Let us not plea. Let us create alternative systems that can help the impoverished in the country."
22 Mar 2017
Ehard: Cooperative banks need to be economically strong, have equal and fair conditions for competition, professional management, access to finance and the integration into a strong cooperative organisation.
22 Mar 2017
Ludwig Ehard is now giving his presentation to Parliament's hearing on economic transformation in the financial sector. He is the regional director of DGRV, the German Co-operative and Raiffeisen Confederation.
22 Mar 2017
Sikhosane: The cooperative bank model presents the most desirable financial inclusive radical approach in eradicating poverty, unemployment, inequality and achieving social cohesion and inclusive growth. Image integrating the R17m grant recipients into co-op bank and use the R2bn of fees for their interest free loans, funeral and health purposes, educating and clothing orphans. Imagine that!
22 Mar 2017
Sikhosane: There are 51 cooperative financial institutions with about R320m assets. Two of the 55 cooperative financial institutions are cooperative banks. There are only 30 and 25 are not accounted for by the Co-operative Bank Development Agency. This agency has assets for over R279m.
22 Mar 2017
NACFISA MD Mzwakhe Sikhosane: the image of cooperative banks is that we are village banks and that we are not sophisticated.
22 Mar 2017
National
Association of Cooperative Financial Institutions of South Africa (NACFISA) is now presenting at Parliament hearing on economic transformation in the financial sector.
22 Mar 2017
DA MP David Maynier was concerned that Absa took 15 months to close the Guptas' bank accounts following a decision by the bank to close their accounts. However, Kuben Naidoo, deputy governor of the South African Reserve Bank and registrar of banks, said that banks should only close bank accounts as a last resort. He therefore was supporting Absa's move not to immediately close the accounts, despite making a decision to do so.
22 Mar 2017
Naidoo: Financial Intelligence Centre Act is there to get banks to be more diligent with regards to accounts that show suspicions.
22 Mar 2017
Naidoo says he can't disclose reasons for banks closing individual accounts. It is up to banks and to the individual.
22 Mar 2017
Kuben Naidoo, deputy governor of the South African Reserve Bank, has responded to a question by DA MP David Maynier regarding why it took Absa 15 months to close the Guptas' bank accounts. Maynier wrote to Barclays CEO Maria Ramos this month after Absa’s affidavit in Finance Minister Pravin Gordhan’s legal battle against Gutpa-owned Oakbay Investments revealed it took a full 312 working days to shut their accounts.
FULL STORY: Maria Ramos asked why it took 15 months for Absa to blacklist Guptas
22 Mar 2017
Kuben Naidoo, deputy governor of the South African Reserve Bank: I won't comment in public on any family regarding the banks. The intent of the act is not to close bank accounts. It should be the last resort and it is the last resort. This is the correct approach to manage those risks. Only if they can not find a solution, should they consider this action.
22 Mar 2017
REPORT BY FIN24's LIESL PEYPER: Black people are still used as tokens in companies in South Africa that have not transformed adequately, said Zodwa Ntuli of the Broad-based Black Economic Empowerment (BBBEE) Commission.
FULL STORY
22 Mar 2017
REPORT BY FIN24's LIESL PEYPER: Kuben Naidoo, deputy governor of the South African Reserve Bank, addressed Parliament on transformation in the financial sector. He said: “One of the advantages to have four large banks is that there’s more resilience in the event of a financial crisis,” Naidoo said. “It also means these banks are well capitalised and they didn’t suffer to the same extent as other financial institutions during the 2008 financial crisis.”
FULL STORY: Why fewer large banks are good (and bad) for SA - SARB
22 Mar 2017
Mthethwa said the other option is to become a 51% shareholder of Mercantile Bank. This organic model would see the bank being 51% owned by the black public and 49% owned by government. It would see the initial capital outlay of about R306m (R150m from government and R156m from the black public).
