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The Banking Association South Africa (BASA) notes the Competition Commission’s decision dated 15 February 2017 and its referral of a collusion case to the Tribunal for prosecution against 17 banks. BASA also notes that specific banks have been cited and implicated in this matter for colluding to fix prices as well as market allocation in the trading of foreign currency pairs involving the Rand.

The Banking Association South Africa (BASA) does not engage its members on the way in which they conduct their businesses, as these are competitive issues, which the industry body must not be involved in. The individual banks concerned must thus respond to this process in their individual interactions with the Competition Commission. However, public comments in the last day reflect on the industry itself and BASA needs to respond to this.

According to Managing Director (MD) of the Banking Association South Africa (BASA), Mr Cas Coovadia: “The issue at hand is in process and this process must take its course and we must await the outcome of the Competition Tribunal deliberations. If the Tribunal finds any bank, or all relevant banks, wanting, the law must take its course and each bank must abide by the outcome. However, we must recognize that this matter demonstrates the independence and strength of regulatory authorities such as the Competition Commission in promoting the efficiency, adaptability and development of the economy as well as ensuring that consumers are offered competitive prices and product choices. It reaffirms the confidence in the financial sector expressed globally, as one of the most stable and robust sectors in the world.”

These processes initiated by the Commission and further undertaken by the Tribunal must be allowed to run their course without any interference.

“If during this process, any bank is found wanting and in contravention of the prevailing legislative and regulatory framework governing competition in South Africa, it must be addressed urgently by the relevant authorities and identified banks to maintain competition in the South African banking sector in the interests of consumers and further avoid risks associated herewith”, says Coovadia.

The banking sector in South Africa, through BASA and as individual banks, is fully committed to playing a very positive and active role in addressing relevant socio-economic issues with a view to enabling inclusive growth to the benefit of all our people. This particular matter does not detract from this.

The Commission is empowered by the Competition Act to investigate, control and evaluate restrictive business practices, suspected cartels and collusive behaviour as well as abuse of dominant positions and mergers in order to achieve equity and efficiency in the South African economy, which the Banking Association South Africa supports in its entirety and the role it plays in the interests of our economy.



Issued by Banking Association South Africa