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COSATU Submission on the Transformation of Financial Sector

COSATU presents key support areas and intervention needs in the financial sector, advocating for transparency, regulation, and job creation while addressing monopoly capital and the need for transformation.

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COSATU Submission on the Transformation of Financial Sector

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  1. COSATU Submission on the Transformation of Financial Sector

  2. Introductory Remarks • Welcome interventions; • Key areas of support; and • Further areas requiring intervention.

  3. Financial Sector Regulation Bill: Areas of Support • Learn lessons from the 2008 economic recession; •  Learn lessons from the African Bank episode; •  Develop early warning mechanisms; •  Expand the oversight role of the Reserve Bank;

  4. Continued • Promote greater transparency, accountability and oversight; •  Providing for greater coordination and intervention mechanisms; •  Promoting greater consumer protection, rights and standards; •  Minimise opaque banking charges and abuses; and

  5. Continued • Strengthen crime prevention efforts; • FICA Bill amendments.

  6. Finance Sector: Areas Needing Intervention/ Transformation

  7. Monopoly Capital • Excessive concentration of capital; • De-facto monopoly of banking, insurance and services sectors; • Price charges and forex collusion; • Foreign ownership of large banks; • Lack of progress establishing state owned bank/ post bank and PIC; and • Patriotic contributions of sector?

  8. Lack of Transformation • De-racialisation; • Wage gap; • Outsourcing; • Casualisation; • Township, informal areas and villages access; and • Support for SMMEs.

  9. Need to Save and Create Jobs • Triple challenges and 35% unemployment; • Sector job growth; • Role of SARB; • FNB and ABSA retrenchments; and • Wage gap.

  10. Nationalise SA Reserve Bank • Oversight and intervention role: • Monopoly; • Transformation; • Price and forex collusion; • Exorbitant bank charges; • Job creation and retrenchments; • Interest rates; and • Public ownership (nationalise).

  11. Exorbitant bank charges and interest rates • Pending Treasury bank charges bill; • FSR Bill; • Excessive bank charges; • Anti-growth interest rates; and • Below inflation investment rate returns versus retirement savings.

  12. Further Intervention Areas: • Support for lower income earners and SMMEs; • Incentivise savings; • Financial education and empowerment; • Consumer assistance; • Garnishee and debit order abuses; • Magistrates and Debt Collectors’ Bills;

  13. Continued: • Auctioning of homes, SMMEs, farms and cars (abuses, oversight and appeals); • Proposed debt relief bill; • Role of the National Credit Regulator; • Loan sharks; and • Participation of organised labour and civil society; • Nedlac Financial Sector Summit.

  14. Conclusion & Thank you. • Welcome engagement; • Intervention areas to transform sector; • Financial Sector Summit; and • Thank you.

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