Johannesburg- In recent months the banking sector has come under scrutiny over allegations that it is serving the interests of white monopoly capital, and there have been calls to launch probes into banks.
However, FNB CEO Jacques Celliers told Fin24 that the independence of banks is not under threat.
“People have had opinions about banks for centuries. It’s not a new experience for us in banking,” he said.
Celliers spoke to Fin24 in an interview following the results announcement of FirstRand Group on Thursday. FNB is one of FirstRand’s franchises.
READ: FNB's digitisation strategy pays off – CEO
This comes on the back of reports that three major banks in South Africa - Investec, Standard Bank and Absa - are being investigated by the Competition Commission over price fixing concerning the rand.
READ: Price fixing: Punish guilty banks harshly, urges ANC
The ANC said the alleged acts of corruption have crudely exposed what it called an ethical crisis in the South African banking sector, Fin24 previously reported.
Last year, Mineral Resources Minister Mosebenzi Zwane called for a judicial inquiry into the four big banks - FNB being one of them - over closing the accounts of the controversial Gupta family.
The four banks, which also include Absa, Standard Bank and Nedbank, filed responding affidavits in support of Finance Minister Pravin Gordhan in the matter of the Gupta family to be heard in court later in March.
READ: Zwane feels vindicated by bank collusion probe
Celliers said the bank would be supportive of the process that will unfold.
Responding to a question on the public backlash banks are facing, Celliers said banks understand their place in society. “It’s not our place to try and pretend we have answers to the world’s problems.”
Celliers told Fin24 that he is proud of the industry and the role banks play as an institution. “[I am] proud of the foundation of financial services built in South Africa over the years.”
“We are blessed as a country to have a banking system as strong as it is,” he added.
Just reflecting on FNB, which has had a local presence for over 175 years, Celliers said the bank has withstood wars, different political systems and different shareholders.
He added that it is important to respond to criticisms by adjusting and adapting to stay relevant. “We reflect on criticisms that come at us,” he said, whether these come from society, as social media attacks, regulatory attacks, or are political in nature.
“We sit down and reflect deeply as a business. Our governance structures are very mature… We face the music and we make sure we adapt to the dynamics that comes at us.”
Celliers said that there is room for competition in the market, and that the Capitec story is an example of that.
The regulatory framework exists to allow new entrants in the market, who can take on “bigger guys” and disrupt things. “Consumers will respond and business will respond. I am proud of our banking system.”
Banking on avoiding a downgrade
As for the role of banks in avoiding a credit downgrade this year, Celliers said it would be unfortunate if the downgrade were to happen. This is why everyone, even those outside the banking sector, should work towards driving growth. It is important to show rating agencies the case for growth in the country, he explained.
“The banking system must enable growth … everyone must try not to restrict growth,” he said.
FNB has been involved in working alongside government and labour to avoid a downgrade, he said.
Celliers added that it would help to have certainty around policies as it would enable people to make better decisions.
For one, he is grateful that the drought is over, as that is one problem less to deal with this year.
“There are some problems we create ourselves and there are some problems out of our hands. The ones in our hands I think we can solve,” he said.
AUDIO: FNB CEO Jacques Celliers shares views on running a bank in turbulent times