MD’S MESSAGE
Report from the
Managing Director
T
he first edition of Banker SA for 2014 is published
as South Africa celebrates its 20th birthday. It also
precedes the 5th general election of our young,
but maturing, democracy. It is thus fitting that The
Banking Association South Africa (The Banking
Association) celebrates 20 years of democracy, but also assesses
where the country is after this time. This is also the first edition
since the passing away of our global leader and exemplar, Nelson
Rolihlahla Mandela, our beloved Madiba!
I will reflect on the 20 years of democracy in a contribution
elsewhere in this edition of the magazine. Let me thus limit my
report to the critical matters that The Banking Association has
dealt with in the last quarter. The following areas are pertinent:
• The credit environment;
• Key legislative matters;
• The National Development Plan (NDP);
• Business Unity South Africa (BUSA).
The credit environment remained challenging. There has been a
significant amount of concern about the rise in unsecured credit,
some of it expressed in a pragmatic and balanced way, but some
concern has been expressed in a manner that adds uncertainty
to the environment. The Banking Association participated in
the consultation process on amendments to the National Credit
Act (NCA), including making oral presentations to the dti
Portfolio Committee in the National Assembly. We expressed
concern about the process around the introduction of additional
amendments late in the process, without, in our view, sufficient
time for public participation on these. The Trade and Industry
Minister also gazetted regulations for the Removal of Adverse
Credit Information from credit bureau. We have consistently
expressed our concern about this, and we are still seeking clarity
on critical aspects of the regulations. We will continue to engage
government on this critical area of bank business, with a view
to finally agreeing on appropriate legislation that will protect
consumers, while also enabling banks to conduct profitable and
responsible business.
We have dealt with some critical legislative issues in this
quarter. We have submitted comments on the last consultation
document on Twin Peaks. We have maintained our consistent
support for the Twin Peaks regime, but also continue to request
involvement in the details of building the two peaks. We have
also maintained consistency in our position that the Twin Peaks
legislation offers us the opportunity to ensure coordination in
the regulation of the financial sector and have participated in
comments on the new land bills, human settlement bills and the
Cas Coovadia, Managing Director,
The B