Finance committee gives go-ahead for state-owned banks nationally

On Thursday, parliament's finance committee approved an amendment to the Banks Act, which will allow state-owned entities to establish a bank but only at national level.

The amendment to the Banks Act to allow for state-owned banks is contained in the Financial Matters Amendment Bill proposed by the Treasury. It is necessary because at present, state-owned companies are not classified as public companies under the Companies Act, and the Banks Act only allows for public companies to establish a bank.

Shivambu was strongly critical of this decision and “instructed” the committee in a last minute letter to finance committee chair Yunus Carrim not to reject his bill but rather to roll it over to the next parliament. Shivambu had no right to “instruct” the committee, Carrim said, adding that there was nothing wrong with Shivambu submitting his bill to the next parliament as long as it was substantively different and raised new issues not covered by the bill adopted by the committee. There was no provision in parliamentary rules for a bill to be rolled over, Carrim explained.

The committee decided that the Treasury bill was substantially better than Shivambu’s bill because it was more comprehensive and had more qualifications and checks and balances restricting the circumstances under which a state-owned entity could apply for a banking licence. Treasury director-general Ismail Momoniat stressed that all banks, including state-owned banks, will have to comply with the banking legislation applicable to all banks and would have to apply for a banking licence.

Banks. Plural. Good luck with that, taxpayers 🙄

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

NEVA MAKGETLA: How to correct state-owned companies before they crashMandates of many entities are too unclear for us to determine whether their financial losses are offset by broader benefits
La source: BDliveSA - 🏆 12. / 63 Lire la suite »

Finance committee adopts crucial amendments to Insolvency ActLast minute interventions by the Reserve Bank governor helps secure passage of amendments through the finance committee
La source: BDliveSA - 🏆 12. / 63 Lire la suite »

Former bank employee implicated in vehicle-finance scam | The MercuryThe net is closing in on the kingpins who masterminded an elaborate scheme to defraud Standard Bank of more than R27million.
La source: IOL - 🏆 46. / 51 Lire la suite »

Zimbabwe central bank borrows $985m from African banks | IOL Business ReportThe nation ditched a discredited 1:1 dollar peg for its surrogate bond notes and electronic dollars, merging into a lower-value transitional currency busrep Who loans Zim money?
La source: IOL - 🏆 46. / 51 Lire la suite »

New finance boss for British American Tobacco in hazy climateThe latest move came as the company reported full-year sales in line with analysts’ expectations
La source: BDliveSA - 🏆 12. / 63 Lire la suite »