Mboweni: State-owned bank will tackle sector discrimination

Finance Minister Tito Mboweni during a media briefing after his first mid-term budget speech at Parliament on October 24, 2018 in Cape Town. (GALLO IMAGES)
Finance Minister Tito Mboweni during a media briefing after his first mid-term budget speech at Parliament on October 24, 2018 in Cape Town. (GALLO IMAGES)

National Treasury has agreed to begin the process of developing a state-owned commercial bank, Finance Minister Tito Mboweni told Members of Parliament at the legislature on Thursday evening.

Mboweni was delivering his budget vote when he made the announcement.

During the debate following his budget vote tabling, Mboweni said deputy minister of finance David Masondo would be in charge of the process.

"The deputy minister of finance and myself have concluded the allocation of responsibility between the two of us. One of the things [he will be] doing is [...] to start the process of formation of the state bank," said Mboweni.

Mboweni added that the establishment of a state-owned bank was critical because South Africans have complained for years that established commercial banks have discriminated against them when offering services such as long-term loans.

"It's a matter of responding to a cry amongst our people.

"That cry fundamentally has to do with the discriminatory nature of the banking institutions. There has to be a response. So it is a big task that he [Masondo] has there," Mboweni said.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
15.16
(-0.54)
ZAR/GBP
20.61
(+0.15)
ZAR/EUR
18.33
(+0.01)
ZAR/AUD
11.70
(+0.23)
ZAR/JPY
0.15
(-0.50)
Gold
1829.90
(-0.89)
Silver
24.74
(-3.12)
Platinum
1080.31
(-3.11)
Brent Crude
56.41
(+0.64)
Palladium
2378.00
(-0.41)
All Share
63549.75
(-0.52)
Top 40
58446.35
(-0.49)
Financial 15
11916.89
(+0.01)
Industrial 25
83811.01
(+0.08)
Resource 10
63855.25
(-1.46)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 646 votes
No, I did not.
51% - 1602 votes
My landlord refused
28% - 867 votes
Vote