The Competition Commission will hold a public inquiry into bank charges and access to the payment system, it was announced on Thursday.
It said this was a consequence of the findings of a research report to the commission on the national payment system and competition in the banking sector and continued public concern on the matter.
The research report sets out the complex workings of the payment system and shows that competition in the banking industry remains inextricably linked to fairness in the national payment system.
The inquiry will occur in terms of Section 21 of the Competition Act which gives the Competition Commission the responsibility to implement measures to increase market transparency and empowers the commission to inquire into, and report to the Minister of Trade and Industry, on competition matters.
Acting commissioner Shan Ramburuth said: “The main competition concerns arising from the report are related to bank charges and access to the national payment system. 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 commission has invited all interested persons and stakeholders, including the banks, to provide responses to the research report. The commission will also seek the views of regulators in the banking sector.
“In due course, the commission will publish a formal statement of issues, which the inquiry will probe, and all interested persons and stakeholders will be encouraged to voluntarily provide information on these issues.
“The inquiry will enable the commission to decide an appropriate course of action, which may include a formal investigation and/or recommendations for legislation and policy.” – I-Net Bridge