The UDM welcomes news that the Competition Commission is to launch a probe into South Africa’s high bank charges.

For many years South African consumers have been receiving the short end of the stick. Last year this was confirmed by the Treasury and Reserve Bank who found that South Africa has the highest banking charges in the world. This is simply ridiculous considering our status as a developing country. Some of the fees charged in South Africa are 150% higher than those charged in any other country!

South Africa’s banking sector is the only one in the world that makes more from charges than from interest. We are apparently the only country in the world that charges people to make deposits. What is apparent from all of these statistics is that banking in South Africa does not follow the accepted banking business model and instead has developed into an uncompetitive and exploitative form of business. To the extent that most of the banks are equally guilty, they would also appear to be guilty of collusion.

We sincerely hope that the Competition will show as little fear or favour in this case as it has shown in previous probes into various sectors. The banks have had many opportunities to reform, and from their impressive annual financial statements it is clear that they are in the position to reform. The time has come to put the consumer first, because it is only with a properly banked and serviced population that we can hope to extend our economic gains to all South Africans.