MD’S MESSAGE
The Banking Association South Africa celebrates
numerous achievements in its 21 years of growth
T
he Banking Association South Africa (The Banking
Association) was established in 1992. South Africa
was in the throes of negotiations towards the first
non-racial democratic elections for a government
elected by universal suffrage. It is fitting that an
association representing the banking sector was born during such
a historical period.
The South African banking sector is one of the most important
assets the country has. The sector has consistently been rated as
one that is among the most stable banking sectors in the world.
We have also been highly rated for enabling access to financial
services. Banks conduct their business responsibly and the sector
is regulated efficiently and robustly. These factors contributed to
the sector’s ability to withstand the financial crisis precipitated in
the USA and Europe.
The Banking Association has recognised the significance of the
period of its birth by working with its members to position the sector
at the forefront of responding to the transformation challenges in
South Africa. The banking sector was the catalyst for the voluntary
Financial Sector Charter (FSC) well before legislation to promote
black economic empowerment was promulgated. Together with other
sectors of the financial industry, the banking sector made a significant
contribution to transformation in the first five years of the FSC.
The banking sector’s performance against the FSC scorecard in two
critical elements from 2003-2008 was:
• Targeted Investments (includes Low-income Housing, Black SME,
Transformational Infrastructure and Agriculture) amounting to
R53,168 billion.
• Equity transactions amounting to R86,799 billion.
The sector also surpassed targets in other elements on the scorecard,
including Employment Equity, Skills Development, Preferential
Procurement, Access to financial services, Corporate Social Investments
and Management Control.
The sector can celebrate a number of achievements in its
21 years of growth, to name a few:
• The Banking Association was instrumental, with the Department
of International Funding and Development (DFID) in the United
Kingdom, in the establishment of Finmark Trust (FT). This
organisation is now an independent research and policy house in
the area of Financial Inclusion and making financial markets work
for the poor. FT’s annual Finscope is recognised as the pre-eminent
analysis of Financial Inclusion in South Africa.
• The Banking Association established the office of the Banking
Ombuds as a voluntary Ombuds for the sector. This organisation
is now independent of the sector, with representation from
consumer bodies and other organs of civil society on its board.
Advocate John Myburgh is the chairman of the board and the
Ombuds is recognised as an independent body with very good
oversight on customer relations within the banking sector.
• The Banking Association established the SA Banking Risk
Information Centre (SABRIC) organisation to work with relevant
government departments and other stakeholders to lead the
fight against bank-related crime. SABRIC works closely with the
Departments of Justice, Safety and Security, Home Affairs and
others and has developed critical intelligence on bank-related
criminal activity.
• Over five years ago, The Banking Association launched the Teach
Children to Save South Africa (TCTS SA) initiative in the country.
South Africa is one of three emerging countries asked to pilot
this initiative, which is very active in the USA, where the Hope
Foundation, together with Citi and other sponsors.
• The Banking Association is an active member of Business Unity
SA (BUSA), with The Banking Association MD being chairman
of the BUSA Finance and Management Committee. The Banking
Association also participates in other business organisations such as
the Centre for Development and Enterprise (CDE), National Bus