ECONOMIC REDEVELOPMENT
Financial sector transformation hearings likely to spark finance charter review
Overconcentration in the banking sector emerges as a key concern at financial sector transformation hearings
A proposal to change the Financial Sector Charter is one of the likely outcomes of the public hearings into the transformation of the financial sector. A key concern that emerged throughout the three-day hearings held jointly by the finance and trade and industry committees was the overconcentration in the banking sector, with four banks controlling more than 90% of the industry. Changes to the ownership targets for banks could be one of the outcomes of the hearings, though details will be finalised by the two committee only in a few weeks’ time. Also, the licensing of black-owned banks could be strongly recommended to ensure the entrance of new players into the market. Finance committee chairman Yunus Carrim found the situation of bank repossession of houses "appalling" and that it needed to be tackled. Summing up proceedings, he said the Financial Sector Charter "is nowhere near what is necessary for now" and there was a "glaring" lack of transformation in the insurance and asset-...
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