President Cyril Ramaphosa has expressed his support for a state bank, indicating that a number of other developing countries have these institutions in place.<\/p>\n
Speaking to journalists as part of a SA National Editors Forum meeting on Friday (26 February), Ramaphosa said that the country’s banking sector is controlled by just a few banks and South Africans need more options in terms of accessing loans, News24<\/a> <\/strong>reported.<\/p>\n “I fully support the establishment of a state bank at an organisational and state level. There is space for a state bank. The Land Bank is a state bank. The IDC (Industrial Development Corporation), if you like, is a state bank. Many developing countries have a number of state banks.”<\/p>\n “If we had such an entity, even the R200 billion that we asked banks to administer could be channelled to it. And truth be told, our banking sector is risk-averse.<\/p>\n “They are entities that operate in the middle sector and are willing to take risks with debt levels that are now exponentially high. I would say we need a state bank and I would insist that it be run in accordance with the best governance principles.”<\/p>\n Finance minister Tito Mboweni has also expressed his support for the introduction of a state bank in South Africa.<\/p>\n In a series of tweets published in February, the finance minister said that the \u2018cry for a state bank is loud, clear and urgent\u2019.<\/p>\n \u201cA state bank is a potential positive disruptor to our financial system. I support its establishment. Finance Kapital is fundamental to our economic transformation. No debate about that,\u201d he said.<\/p>\n A State Bank is a potential positive disruptorr to our financial system. I support its establishment. Finance Kapital is fundamental to our economic transformation. No debate about that.<\/p>\n \u2014 Tito Mboweni (@tito_mboweni) February 4, 2021<\/a><\/p><\/blockquote>\n\n