Calls for a black-owned bank gain traction
BUSINESS associations are increasingly banding together in calling for the establishment of black-owned banks that will cater for previously disadvantaged South Africans, but state policies remain a hindrance to this aspiration.
Also, statements such as “only a banker can buy a bank” might be seen to indicate that the country has no strategy to transform the financial sector to pave the way for black people to establish banks.
Among those who are not happy with the banking status quo is George Sebulela, the president of the multiracial South African United Business Confederation. Sebulela is also the former chairperson and secretary-general of the Black Business Council (BBC).
Sebulela said he was concerned about the government’s policies that were detrimental to the aspirations of black people to acquire banks. This was while the established banks did not seem interested in assisting the formation of a black-owned bank.
“The challenge is that there are not many black individuals who have the amount of capital that is needed for this … because the truth of the matter is that for any transaction you need to invest a lot of money. In the financial services industry, there is what we call minimum capital adequacy so in case – as you have seen with VBS – you have to fulfil the obligations to the depositors, you can do that,” he said.
“That threshold has been made so high by the SA Reserve Bank (SARB) and it does not compromise on what the minimum capital adequacy should be,” Sebulela said.
The BBC and Sekunjalo Investment Holdings (SIH) have also seen the need for black-owned banks. They both talked about black people either establishing their banks or buying existing institutions. Sekunjalo had its sights set on Ubank and was willing to spend R250 million recapitalising the workers’ bank, which is currently under curatorship and is soon to be sold to African Bank Holdings Limited.
Ubank curator Zola Beseti turned down Sekunjalo’s request to help recapitalise Ubank for a minimal stake by saying: “Only banks registered in terms of Section 54 of the Banks Act must be invited to bid for the assets and liabilities of Ubank.”
He said he had been advised on this by the SARB’S Prudential Authority in the interest of the depositors of Ubank, and given the capital position of Ubank.
It is not clear whether this statement was only about Ubank or a general principle as SARB spokesperson Ziyanda Mtshali is yet to respond to a request to clarify this.