Basa: we can solve grant problems
Banks not shying away from issue but mindful of competition concerns
The Banking Association SA (Basa) told the expert panel appointed by the Constitutional Court that it was committed to addressing the "challenge" of the distribution of the social grants, but said it was mindful of potential competition issues. "We would therefore want the discussions on the specific details and design to be overseen by the South African Reserve Bank." Bank analysts said on Wednesday that the Reserve Bank’s involvement would be a minimum requirement to protect the banks from the potentially crippling reputational risk associated with the distribution of social grants. One analyst, who did not want to be named, said Capitec would be an obvious player, but it probably would not be comfortable with the risk. Capitec spokesman Charl Nel said the bank was not actively pursuing the South African Social Security Agency (Sassa) contract. "We are satisfied with our continuous growth of more than 100,000 clients per month and we will rather continue to focus on servicing our ...
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