The governor says in 2002 they had to exit about 50 banks from the system as a result of that crisis because they couldn’t cope.
“Unlike other countries we had not experienced the banking crisis and that has provided for other players to enter. If you are Swiss, you have moved from having three pillars to two pillars in the banking system. I don’t think there has been a new bank license in the US in the past 10 years. We are, in the meanwhile, processing new banking applications and that is very positive from our perspective.
“We have written to Treasury about their ownership of the African Bank. The African Bank was established more than 30 years ago by the likes of Facos. We have written to National Treasury to buy that equity that is owned by National Treasury, as well as equity owned by the commercial banks. We think we can help to reposition the African Bank more to the needs of the SMME sector, and the opportunity of multiplicity of banks owned by the previously marginalised has a reason.
Zungu adds, “Banking license is taking place between the joint Prudential Authority and the Financial Sector Conduct Authority. So, if you want to apply for a banking license then the place to go to is the regulator and not the politicians. The power and the strength of the supervisor lie in the ability to issue or withdraw the license. That is why it has taken from a political process and located with the supervisor.
Prudential Authority is part of Reserve Bank Regulator. The report showed that most of the banks had met the Authority’s minimum safety and soundness requirements.