LITANY OF COMPLAINTS PERSIST
TRUDI MAKHAYA: Opening banking industry can bring competition benefits
Debates about regulation in banking have sometimes set up a false dichotomy between openness versus safety, writes Trudi Makhaya
It is almost 10 years since the banking inquiry convened under the Competition Act released its findings on the state of competition in the retail banking sector. Some of its recommendations have found their way into how the industry conducts itself, such as disclosures over fees. Others have been rejected as being unworkable. Despite the inquiry, there has been a sustained litany of complaints against banks, many of which relate to competition. These include the chorus on bank charges, complaints about the banks’ perceived reluctance to extend finance to small and black-owned businesses, and the barriers to entry and expansion in the sector. Debates about regulation in banking have sometimes set up a false dichotomy between competition versus stability, openness versus safety. There are indications policy makers may transcend this dichotomy.The "twin peaks" model will set up an agency to focus on market conduct and consumer protection. Some years ago, legislation to introduce diffe...
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