Parliament has been told that the transformation of the financial sector is lagging behind.
The sector was failing to meet targets set on ownership, management and skills development as well as improving access for black-owned small to medium businesses.
On Tuesday, Parliament’s Standing Committee on Finance was briefed by National Treasury, the Broad-Based Black Empowerment Commission, the Financial Sector Transformation Council and the prudential authority of the Reserve Bank on the state of play.
Treasury’s Ismail Momoniat said to be transformative, the financial sector should be working for all South Africans, helping them to save, borrow, take out insurance and transact.
“The financial sector must do more to transform and be transformative…. I think that transformation has suffered the last few years through lack of economic growth and state capture,” he said.
Momoniat said some sectors needed to transform more than others, such as the asset management industry, where he said there was little progress in transformation.
The Financial Sector Transformation Council is currently reviewing transformation targets for the multi-trillion-rand sector, where ownership was still concentrated in white hands.