The Competition Commission is conducting a preliminary probe into fees and charges in the banking industry, Independent Online reported on Monday.
Commission spokesperson Zodwa Ntuli said the purpose of the inquiry was to determine whether a full investigation was required.
Banking Association of South Africa managing director Cas Coovadia said the association had seen a tender from the commission ”for someone to look at bank fees and charges”.
”However, there has been no engagement at industry level. The Falkena report is on the table and we will respond to any interaction they [the Competition Commission] offer.”
The Falkena report was commissioned by the national treasury in May 2003.
The task team found the ability of consumers to make rational choices was undermined because the full costs of banking services were rarely spelt out.
Global comparisons show South African banks charge fees on more retail transactions than banks in other countries, and these are usually higher.
Absa spokesperson Nick Cairns said Absa would be very happy to participate in a probe if asked to do so.
Standard Bank spokesperson Erik Larsen said the group was unaware of an inquiry.
The Falkena report found that the four main banks — Absa, Standard Bank, FirstRand and Nedcor — accounted for 83% of total deposits by the public in June 2003.
Each of the big four had a share of 25% or more in one or more divisions, including credit cards, current accounts, mortgages or leasing and instalment sales.
Since 1999, average annual credit card fees at major banks grew by 29% and service fees on current accounts doubled, concluded the Falkena report. – Sapa