1. COSATU Submission on the Transformation of Financial Sector

2. Introductory Remarks Welcome interventions; Key areas of support; and
Further areas requiring intervention.

3. Financial Sector Regulation Bill: Areas of Support
Learn lessons from the 2008 economic recession;
 Learn lessons from the African Bank episode;
 Develop early warning mechanisms;
 Expand the oversight role of the Reserve Bank;

4. Continued Promote greater transparency, accountability and oversight;
 Providing for greater coordination and intervention mechanisms;
 Promoting greater consumer protection, rights and standards;
 Minimise opaque banking charges and abuses; and

5. Continued
Strengthen crime prevention efforts;
FICA Bill amendments.

6. Finance Sector: Areas Needing Intervention/ Transformation

7. Monopoly Capital Excessive concentration of capital;
De-facto monopoly of banking, insurance and services sectors;
Price charges and forex collusion;
Foreign ownership of large banks;
Lack of progress establishing state owned bank/ post bank and PIC; and
Patriotic contributions of sector?

8. Lack of Transformation
De-racialisation;
Wage gap;
Outsourcing;
Casualisation;
Township, informal areas and villages access; and
Support for SMMEs.

9. Need to Save and Create Jobs
Triple challenges and 35% unemployment;
Sector job growth;
Role of SARB;
FNB and ABSA retrenchments; and
Wage gap.

10. Nationalise SA Reserve Bank
Oversight and intervention role:
Monopoly;
Transformation;
Price and forex collusion;
Exorbitant bank charges;
Job creation and retrenchments;
Interest rates; and
Public ownership (nationalise).

11. Exorbitant bank charges and interest rates
Pending Treasury bank charges bill;
FSR Bill;
Excessive bank charges;
Anti-growth interest rates; and
Below inflation investment rate returns versus retirement savings.

12. Further Intervention Areas:
Support for lower income earners and SMMEs;
Incentivise savings;
Financial education and empowerment;
Consumer assistance;
Garnishee and debit order abuses;
Magistrates and Debt Collectors’ Bills;

13. Continued:
Auctioning of homes, SMMEs, farms and cars (abuses, oversight and appeals);
Proposed debt relief bill;
Role of the National Credit Regulator;
Loan sharks; and
Participation of organised labour and civil society;
Nedlac Financial Sector Summit.

14. Conclusion & Thank you. Welcome engagement;
Intervention areas to transform sector;
Financial Sector Summit; and
Thank you.