MD’S MESSAGE
Shaping
the banking
sectors
W
elcome to the third edition of The SA Banker
magazine, South African Edition. The thought
behind the magazine was to provide the
platform for robust and enlightening debate
in the banking space with a view of creating
a globally competitive, but responsive banking sector that would
serve South Africa well.
The launch of the magazine was opportune as the financial
services sector faced immense pressure as a result of the Global
Financial Crisis and the Sovereign Debt Crises in ensuring that it
keeps pursing business that is transparent and properly regulated.
The financial services sector, regulators and governments were
charged with the responsibility of arresting the mistakes of the past,
thus ensuring that they are not repeated in the future. The effects
of the crisis have forever changed the financial sector in the eyes of
the bank client and the manner in which countries relate with each
other as economic blocks.
The third world economies have come out of the financial
crisis relatively unscathed and strongly emerged as the possible
economies of the future, and this is sure to change the manner in
which future business deals are made. The challenge is to ensure
that in responding to the challenges of better regulation, space is
still left for the financial services sector to do business in a globally
competitive environment.
The impending implementation of Basel III and the costs involved
will require South African banks trading within South Africa to
rethink creatively and transparently to their business, so that the
client does not bear all the costs while contributing to a thriving
economy.
The challenges facing the country are such that the country needs
a vision that would unite all of us in the quest to making the lives of
all South Africans better. In this regard, the banking sector welcomes
the finalisation of the National Development Plan (NDP) and
hopes that it will galvanise all sectors of the South African society.
The banking sector stands ready to engage with government and
other stakeholders as the NDP moves towards implementation.
The Banking Association South Africa (The Association) is
committed to creating strong and mutually benefiting relationships
with government and other stakeholders. In 2012 alone, The
Association and its member banks hosted the annual Banking
Summit to ponder the issue of infrastructure financing with
particular reference to the roles of government, the development
finance institutions and commercial banks. Furthermore, The
Association convened the Financial Inclusion Indaba and Exhibition
2012, which centred its deliberations on:
• the role of the banking sector in Financial Inclusion,
• south-to-South Learnings of Inclusive Banking, and
• the role of financial sector regulators in promoting Financial
Inclusion and trade-offs in maintaining the integrity and stability
of the financial system.
In confronting challenges that South Africa faces, it is crucial
that all sectors and stakeholders transcend the debilitating “stage”
where societies assume some settled truths. What is required
is for the process of interrogation and engagement to be openended and permanent, where ideas get richer and smarter, owing
to their confrontation with error. The Banker magazine is but one
of the avenues through which different stakeholders can shape the
banking sectors.
As you read this edition, I hope that you formulate your own
thoughts and ideas in terms of which banking and financial services
sector can respond to the national, continental and global challenges
that it faces.
Cas Coovadia
Managing Director, Banking Association South Africa
Edition 3
SA BANKER
7