Pretoria - Finance Minister Malusi Gigaba has called for transformation in the financial sector, and for appropriate targets to be set for the Financial Sector Charter.
In his Medium-term Budget Policy Statement on Wednesday, Gigaba highlighted the importance of a transformative financial sector.
“The financial services sector is at the heart of the SA economy and touches the lives of all citizens. Financial services allow people to make daily economic transactions, save and preserve wealth to meet future aspirations and retirement needs, and insure against the loss of income, personal disaster or vulnerability,” he said.
It further enables economic growth, job creation, the building of vital infrastructure and sustainable development for the country and its people.
Gigaba commended the work of the Standing Committee on Finance in holding hearings on financial sector transformation.
“Their draft report carefully balances the competing interests of the nation as a whole, foreign investors, borrowers, lenders and ordinary South Africans.
“This report will assist in preparing for the Financial Sector Summit that we hope will be convened early next year, so that we can take stronger steps in developing appropriate targets for the Financial Sector Charter,” he said.
The current version of the charter complies with the latest black economic empowerment codes, he said.
“The development of sector codes is an integral and strategic vehicle to advance transformation in the economy at sectoral level.
“Sector codes provide sector stakeholders an opportunity to develop a common vision for the growth and transformation of their sector,” he said.
The new financial sector code shows that transformation is not only about ownership. It involves skills development, targets for empowerment finance, access to credit, management control, and the provision of services to previously underserved areas, he said.
Twin Peaks a 'significant' reform
Gigaba said the new Twin Peaks system of financial regulation represents a “significant” reform.
“It will create a new regulator for market conduct, which will substantially improve the way financial institutions treat their customers,” he said.
Gigaba will shortly release the draft transitional regulations to begin the process of implementing Twin Peaks for public comment. The government is “on track” to implement it in 2018/19, he said.
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