Recently, there was a report that was released on the financial services and the regulations in which it was stated that the targets in the financial industry or a sector should be made compulsory and they should all be incorporated into regulation. The committee for the trade, finance and industry has not yet approved in the parliament and it is still under consideration. However, the reports would be circulated across the industry and the stakeholders who put forth their suggestions and ideas before it was finalized.
The report is expected for a review and it all falls in the tentative approach. There is a financial sector summit which is planned for next year. And this summit of national economic development and labor council will be in force for adapting the final conclusion of the hearing on the given report.
A week before, the MPs came together and discussed on this issues and they had a draft report which said that the corporate would be charged and penalized if they do not achieve their financial sector targets and all corporate should work on achieving their goals. This could also be made as a condition for approving the licensing of financial institutions.
The draft report also said that there was a decline in the transformation in the financial sector and this was concluded on the available data. The data indicated the regressions in specific fields like skill development, management, ownership etc. this committee also agrees with the proposal made by the national treasury which stated that the targets should be raised and increased specifically in procurement, financial inclusion, ownership, management control and skill development.
There should also be ways that should be found out for direct black ownership across all the major banks. The monopoly in the banking should address now for bringing this transformation and working towards the goal. There should also be stringent rules imposed for the startups and the new entrants in the financial industry. However, the depositor’s interest should be protected while implementing all other regulations. This transformation does not address to take away the benefits the poor and the needy population reaped. The ultimate transformation should be on the basis of equality and inequality measures should be reduced.
Having laid that, these recommendations and suggestions for the best financial services and its targets for the transformation cannot be achieved overnight and they should all be implemented over a course of time. They should be phased out in a proper process and over the course of time with immediate goals, medium term goals and long term goals.