Office of the Chief Whip
Bank Collusion in Manipulating Currency Trading
The ANC welcomes the Competition Commission's referral of the banks to the Competition Tribunal for collusion in manipulating trading in the Rand.
If the Tribunal finds the banks guilty we believe they must be punished swiftly and severely.
This comes in the wake of several other cases globally in which banks have been fined huge sums for illegal trading. Once again, banks are being accused of unethical behavior.
It the low income and poor strata in our society that suffer disproportionately from such greed and corruption.
The ANC government is right to regulate the banks more stringently through the new Twin Peaks model, with a much more powerful Market Conduct Authority. We need to observe developments in the Tribunal to decide what further regulation we need to prevent the banks manipulating the currency again.
The Competition Commission's investigations also reinforce the need to reduce the monopoly of four banks of 90% of the market, allow new entrants, including the Postbank, and transform, including through deracialisation, the financial sector.
We also fully support the 14 March parliamentary public hearings on the transformation of the financial sector. Let's act decisively!