The banking sector is willing to work with government on transformation and addressing problems within the banking sector. That's what the managing director of the Banking Association South Africa, Mr Cas Coovadia, told Members of Parliament this week.
Appearing before the Standing Committee on Finance to talk about the Banking Association South Africa's role in the banking sector, he said the partnership between the sector and the government "would help consolidate a competitive and sustainable banking sector".
The Banking Association South Africa reported that the financial sector contributed nearly 19 percent (about R475 billion), to the South African gross domestic product (GDP) in the fourth Quarter of 2009.
Mr Coovadia said the Financial Sector Charter, as agreed in 2003, was committed to promoting a globally competitive financial sector that reflected the demographics of South Africa.
"The charter also promotes access to financial services for the previously disadvantaged South Africans," he said.
The Chairperson of the Standing Committee on Finance, Mr Thabadiawa Mufamadi, said the Banking Association South Africa was a critical body because "it speaks on behalf of the fastest growing sector in South Africa. Its influence and impact on the development progress of our country cannot be undermined".
"The issue of transformation through this association should be high on the agenda. Transformation goes beyond equity; it is a process that should be followed to assist the programmes of a developmental state.
"Issues of private sector credit such as lending to the poor should be reviewed, because the poor cannot be punished for being poor," Mr Mufamadi said.
Source: Parliament of South Africa
Banking on transformation
