MK Party MP Brian Molefe says that urgent intervention is required to prevent banks from arbitrarily closing the accounts of clients without providing any reasons.
Molefe expressed concern over the lack of a formal adjudication body to oversee such closures, warning that the practice is irrational and arbitrary.
He was speaking at a joint meeting between the portfolio committees of Trade and Industry and Finance in Parliament on Tuesday.
“Banks cite laws that aren’t even South African laws to justify their actions, yet no formal body exists to hold them accountable,” he said.
He further questioned the role of the Banking Association of South Africa (BASA), arguing that the organisation has failed to ensure fairness and transparency within the sector.
“Shouldn’t banks be subjected to the highest standards, given their critical role in the economy? Why is there no requirement for written reasons when accounts are closed? Clients deserve transparency and legal recourse,” said Molefe.
Molefe called for urgent legislative intervention to regulate banking practices, arguing that banking is a public service and should be governed by laws that protect consumers from arbitrary and unfair treatment.
“South Africa cannot allow a financial sector that continues to serve only a privileged few while shutting out the majority from economic participation,” he said.
The hearings have intensified pressure on banks to provide concrete answers regarding their transformation efforts, account closure policies, and overall commitment to inclusive banking.
Lawmakers are pushing for reforms that ensure the financial sector operates fairly and equitably.
The meeting continues with the banks and regulatory bodies set to respond later today.
IOL