The Competition Commission will hold a public inquiry into bank charges and access to the payment system, it said on Thursday.
It was releasing a research report into the national payment system (NPS) and competition in the banking sector. The NPS is the accounting and transaction system between banks and other financial institutions.
“The main competition concerns arising from the report are related to bank charges and access to the NPS,” said acting commissioner Shan Ramburuth. “The effect of both of these on the provision of competitive banking services for all South African consumers (be they businesses or individuals) underpin the inquiry.”
The report found that the NPS is a “highly efficient and sound” system, but that it lacks certain features that would make it fair to consumers.
The Banking Association of South Africa welcomed the report and the recommendation of improved access to the NPS.
“As indicated in the report, this needs to be done in a responsible and regulated manner to maintain the efficiency and sustainability of the system to the ultimate benefit of the customer,” said the association’s MD, Cas Coovadia.
The role of the NPS in the South African economy is crucial for the safe and sound exchange of transactions, he said. The association is committed to work with the inquiry.
The Competition Commission said the outcome of the inquiry will enable it to take appropriate action, including a formal investigation or recommendations for legislation and policy changes. — Sapa
The commission has invited reaction to the report — available on www.compcom.co.za. Submissions should be made to Keith Weeks on [email protected] or by fax on 012 394 4258