SOUTH African banks have effectively told the ANC and government to back off.
This warning - although very subtle - is contained in a 23-page document penned by the Banking Association of South Africa in response to calls for increased state participation in the economy.
The association represents 30 local and foreign banks.
The document also responds to calls for further regulation of the banking industry, something that has raised the ire of local banks.
In their response, the banks have instead boldly and unapologetically told the ANC-led government to get its house in order before offering lectures on how they should conduct their business.
While large sections of the association's document show that financial institutions took a conciliatory note towards the ANC, the document also provides proof that they have not shied away from registering their displeasure at the governing party's proposals.
The sector has implied that the ANC-led government was encroaching on its territory.
The association agreed that the government had a role to play in the economy but insisted it defines its role properly.
"The banking sector agrees with the concept of a mixed economy with defined roles for government, the private sector and other stakeholders. The sector is, however, concerned that the document seems to envision a dominant role for the state in economic activity," the document claims.
The banks have also rejected the party's proposal of a developmental state, arguing that government was incapable of satisfying the requirements of such a state.
They argued instead in favour of a "facilitative state model which provides clear policy guidelines and cooperation between the state and the private sector".
Deputy President Kgalema Motlanthe will address a banking summit today in Rosebank, Johannesburg.
The government is expected to call on the private sector and financial services sector to focus on spending on infrastructural projects.
While the banks have an interest in variousmultibillion-rand projects, they have raised objections about uncertainty over policy.
"Policy and regulatory uncertainty are worrying to the banking sector as it is vastly exposed in land, agriculture and mineral sectors," the document reads.
ANC spokesman Keith Khoza said he could not say with certainty whether the banking association's concerns would be addressed at today's summit.
He said Motlanthe would be addressing the summit as "the deputy president of the country" and that the event was "not an ANC programme". - molatlhwao@sowetan.co.za
Back off, SA banks tell ANC and govt
SOUTH African banks have effectively told the ANC and government to back off.
This warning - although very subtle - is contained in a 23-page document penned by the Banking Association of South Africa in response to calls for increased state participation in the economy.
The association represents 30 local and foreign banks.
The document also responds to calls for further regulation of the banking industry, something that has raised the ire of local banks.
In their response, the banks have instead boldly and unapologetically told the ANC-led government to get its house in order before offering lectures on how they should conduct their business.
While large sections of the association's document show that financial institutions took a conciliatory note towards the ANC, the document also provides proof that they have not shied away from registering their displeasure at the governing party's proposals.
The sector has implied that the ANC-led government was encroaching on its territory.
The association agreed that the government had a role to play in the economy but insisted it defines its role properly.
"The banking sector agrees with the concept of a mixed economy with defined roles for government, the private sector and other stakeholders. The sector is, however, concerned that the document seems to envision a dominant role for the state in economic activity," the document claims.
The banks have also rejected the party's proposal of a developmental state, arguing that government was incapable of satisfying the requirements of such a state.
They argued instead in favour of a "facilitative state model which provides clear policy guidelines and cooperation between the state and the private sector".
Deputy President Kgalema Motlanthe will address a banking summit today in Rosebank, Johannesburg.
The government is expected to call on the private sector and financial services sector to focus on spending on infrastructural projects.
While the banks have an interest in variousmultibillion-rand projects, they have raised objections about uncertainty over policy.
"Policy and regulatory uncertainty are worrying to the banking sector as it is vastly exposed in land, agriculture and mineral sectors," the document reads.
ANC spokesman Keith Khoza said he could not say with certainty whether the banking association's concerns would be addressed at today's summit.
He said Motlanthe would be addressing the summit as "the deputy president of the country" and that the event was "not an ANC programme". - molatlhwao@sowetan.co.za
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