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South African lawmakers to quiz banks over lending practices

The meeting is to ensure that the banking sector in South Africa is open, transparent and of service to poor people to facilitate inclusion in the productive sectors of the economy,' Mzwandile Masina.
South African lawmakers are set to interrogate major banks regarding their lending practices, focusing on issues like high interest rates, stringent loan conditions, and the impact on small businesses and consumers. This inquiry comes in response to widespread complaints about the difficulty in accessing affordable credit, which has been exacerbated by economic conditions such as high unemployment and slow economic growth. The session aims to explore whether banks are engaging in practices that unfairly disadvantage certain groups, potentially leading to recommendations for regulatory changes or interventions to ensure more equitable access to finance. The banks expected to appear include major players like Standard Bank, Absa, Nedbank, and FirstRand, with the parliament seeking to understand the banks' risk assessment models, their approach to lending to SMEs, and how they address consumer complaints.

Read the Full Moneyweb Article at:
[ https://www.moneyweb.co.za/news/south-africa/south-african-lawmakers-to-quiz-banks-over-lending-practices/ ]