South African banks are facing heightened scrutiny following further allegations of discriminatory practices and arbitrary account closures, with calls for stricter regulations to ensure transparency and accountability in the sector.
During parliamentary hearings on banking transformation, MK Party MP and former Eskom CEO Brian Molefe raised concerns about the continued dominance of the white minority in the financial sector, arguing that existing statistics mean little when banking practices remain exclusionary.
“There is an unequal relationship between the banks and clients and yet legally banks can close bank accounts without justification,” said Molefe.
Molefe said that banking was a public service and should be held accountable on the basis that they were granted a banking licence by the state.
“Nobody can function in South Africa without a banking account. It is a public service and right,” said Molefe.
Molefe pointed out the unequal power dynamics between banks and their clients, particularly small traders who often find themselves excluded from banking services. “Many small traders and entrepreneurs are unable to access banking facilities, yet banks continue to close accounts without proper justification, further marginalising them,” he said.
IOL