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COSATU Submission on the Transformation of Financial Sector

COSATU Submission on the Transformation of Financial Sector. Introductory Remarks. Welcome interventions; Key areas of support; and Further areas requiring intervention. Financial Sector Regulation Bill: Areas of Support. Learn lessons from the 2008 economic recession;

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COSATU Submission on the Transformation of Financial Sector

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  1. COSATU Submission on the Transformation of Financial Sector

  2. Introductory Remarks • Welcome interventions; • Key areas of support; and • Further areas requiring intervention.

  3. Financial Sector Regulation Bill: Areas of Support • Learn lessons from the 2008 economic recession; •  Learn lessons from the African Bank episode; •  Develop early warning mechanisms; •  Expand the oversight role of the Reserve Bank;

  4. Continued • Promote greater transparency, accountability and oversight; •  Providing for greater coordination and intervention mechanisms; •  Promoting greater consumer protection, rights and standards; •  Minimise opaque banking charges and abuses; and

  5. Continued • Strengthen crime prevention efforts; • FICA Bill amendments.

  6. Finance Sector: Areas Needing Intervention/ Transformation

  7. Monopoly Capital • Excessive concentration of capital; • De-facto monopoly of banking, insurance and services sectors; • Price charges and forex collusion; • Foreign ownership of large banks; • Lack of progress establishing state owned bank/ post bank and PIC; and • Patriotic contributions of sector?

  8. Lack of Transformation • De-racialisation; • Wage gap; • Outsourcing; • Casualisation; • Township, informal areas and villages access; and • Support for SMMEs.

  9. Need to Save and Create Jobs • Triple challenges and 35% unemployment; • Sector job growth; • Role of SARB; • FNB and ABSA retrenchments; and • Wage gap.

  10. Nationalise SA Reserve Bank • Oversight and intervention role: • Monopoly; • Transformation; • Price and forex collusion; • Exorbitant bank charges; • Job creation and retrenchments; • Interest rates; and • Public ownership (nationalise).

  11. Exorbitant bank charges and interest rates • Pending Treasury bank charges bill; • FSR Bill; • Excessive bank charges; • Anti-growth interest rates; and • Below inflation investment rate returns versus retirement savings.

  12. Further Intervention Areas: • Support for lower income earners and SMMEs; • Incentivise savings; • Financial education and empowerment; • Consumer assistance; • Garnishee and debit order abuses; • Magistrates and Debt Collectors’ Bills;

  13. Continued: • Auctioning of homes, SMMEs, farms and cars (abuses, oversight and appeals); • Proposed debt relief bill; • Role of the National Credit Regulator; • Loan sharks; and • Participation of organised labour and civil society; • Nedlac Financial Sector Summit.

  14. Conclusion & Thank you. • Welcome engagement; • Intervention areas to transform sector; • Financial Sector Summit; and • Thank you.

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