PROFILE
of the National Housing Accord, which for the first time provided
the framework for banks to provide affordable housing finance.
‘After signing of the Accord, we partnered government in the
establishment of Servcon to manage mortgage holders in default in
the low-income market,’ says Coovadia.
The Banking Association facilitated the participation of the
banking sector in the formation of Business Against Crime
(BAC), an initiative by the business sector to combat crime in the
country. Other milestones include establishing the SADC Banking
Association (SADCBA) of which The Banking Association is still
the Secretariat; managing development and implementation of
integrated payments and settlements system for SADC; finalisation
of the new Code for Banking Practice which is now being used by the
Banking Ombudsman to oversee bank interaction with customers;
established the office of the Banking Ombudsman as an independent
voluntary Ombudsman, chaired by Advocate John Myburgh.
Finmark Trust is also another entity which was established by the
Association which does a substantial amount of work in the research
sector of financial inclusion for the majority of the unbanked South
African citizens.
In August 2002 at the NEDLAC Financial Sector Summit, The
Banking Association volunteered to develop the Financial Sector
Charter. The Charter was implemented from 2003-2008 as a
voluntary instrument and was finally gazetted as a sector code on 26
November 2012. The Charter is a blueprint setting the transformation
agenda in the country’s highly competitive financial services sector.
The Banking Association says that out of the R122 billion that
South African financial services companies have agreed to provide
for empowerment finance between now and 2017, about R80 billion
will come from banks, a sign of commitment and a substantial vote
of confidence in the transformative Code. The other R42 billion
is expected to come from the Association of Savings Institutes of
South Africa (ASISA).
The Banking Association’s Thabo Tlaba-Mokoena, General
Manager in the Socio-Economic Growth and Development Division,
says the performance of the financial services sector in adhering to
the FSC is expected to be measured by verification agencies. Reports
are expected to be produced from next year. He says financial
services companies with annual revenue of R10 million and more
are expected to report on how they are meeting the transformation
agenda set in the Code.
Coovadia says The Banking Association is proud to have played a
key role in facilitating the signing by banks of a Code of Conduct on
Credit extension which has since been incorporated into the Code
of Banking Practice. The Association was also part of an agreement
signed with National Treasury in October 2012, to address bad
practices in the unsecured lending environment. The deal came after
National Treasury raised concerns about the increasing indebtedness
of consumers.
The Banking Association has also engaged on behalf of the
banking sector on critical legislative and regulatory issues;
among them, the National Credit Act, Companies Act, Consumer
Protection Act and the Home Loans Mortgage Disclosure Act.
By Sure Kamhunga
12
BANKER SA
Subbed Banker 6 BASA at 21.indd 12
Member
Bank
1
2
Name of your bank?
African Bank
How has The Banking Association
advanced banking’s interests?
The Banking Association South Africa (The Banking
Association) has made a significant contribution to the
banking industry to ensure that South Africa is rated one
of the most stable banking environments in the world. This
has occurred through The Banking Association’s promotion
of fair, transparent and responsible banking practices. The
Banking Association has also positively influenced and
supported the National Credit Act which has contributed
significantly to the financial stability in the country.
3
What difference has The Banking
Association’s efforts (in lobbying
government, representing the industry,
aiding transformation) made to your bank
and the business / regulatory environment
in which it operates?
The Banking Association’s efforts have facilitated numerous
industry strategic debates which eventually delivered our
banking industry standards, which African Bank subscribes
to. This art of obtaining all stakeholder inputs and then
defining what is in the best interest for the industry is
exemplary and ensures government regulatory bodies hear
a single voice. The Banking Association has also taken up
the national agenda through working with government to
foster the objectives of the National Development Plan.
4
How has The Banking Association’s
efforts aided in achieving a good
environment in southern Africa for
international banking?
Through their ongoing professional media engagements
and transparent industry research, The Banking Association
has assisted to instil confidence in our banking industry
for international investors to consider South Africa as a
destination for their financial activity. In Southern Africa, The
Banking Association is collaborating with SADC countries
to ensure good working relationships and to share best
practice in the financial sector.
Edition 6
2013/07/18 8:04 AM