Bank Charges

By Staff Writer

Compare banks and save with Justmoney

Bank Charges

The Competition Commission released its technical report into bank charges last week.

The Banking Enquiry Panel has been meeting since 2006 and have now released their report. The enquiry was constituted to decide whether a formal enquiry into bank charges was necessary and the report was based on voluntary submissions by the banks, they were not compelled to answer by the powers vested in the Competition Commission and the report is written in the context of voluntary submission by the banks.

The report is ended with this quote "It is not the strongest of the species that survives, nor the most intelligent, but rather the one most adaptable to change".

The report in its recommendations calls for the 'Establishment of a centralised banking fee calculator service. This should provide an accessible facility for consumers to input their own product requirements - with assistance if necessary - and obtain (without cost) an automatic, objective indication of where they could obtain those services and for what prices'.

This calculator already exists and can be found right here at the Justmoney bank fee calculator.

The report basically threatens the banks with a two to three year grace period to implement its recommendations or they will force the banking industry to introduce a 'basic banking product' much like the current Mzansi accounts with 'similar content, capable of being simply and directly compared'.

The enquiry panel will regulate for this if the banks do not voluntarily move towards a more transparent charges model and if they do not introduce more price competition amongst themselves.

Justmoney checks all the bank accounts that are available in SA and it is a complex process, but one that is explicable after a lot of hard work, which is why we can bring you our bank calculator confident that we have done the hard work for you and that you can now click and compare to find the best bank for you. The report can be found here.

The financial news outlets comments on this story are as follows. IOL carried the opinion that charges are too high and that the banks should implement reforms.

The Mail and Guardian put it this way 'The Competition Commission appreciated that industry participants would take the lead in implementing certain reforms, and were encouraged to do so voluntarily'.

Business Day noted that the current system 'let banks sustain prices higher than would prevail in a competitive market'.

At the end of the day the consumer needs to have information in order to make a better decision. Justmoney doesn't believe in shouting, but rather letting you the consumer see for yourself. Compare banks and save with Justmoney, South Africa's online guide to money.
 
 

Recent Articles

Featured Do you need credit to survive Easter?

Easter weekend is here and with it the expectation of celebration. While there is nothing wrong with this, it often means spending more money than you bargained for.

 

Read more

Young woman building a legacy brick by brick

When her dad passed away, Siyasanga Ngcongca, an internal auditing graduate, took over the family business. Ngcongca Construction, as her company is known, is a service provider to five insurance companies, handling building and commercial claims.

Read more

Can you evict paying residential tenants?

One of the most common reasons for wanting to evict a tenant is non-payment of rent. But there are many other situations that landlords may encounter. These can range from damaging property and breaching contract, to being reported as a continuous disturbance by neighbours.

Read more

How one entrepreneur designed her financial future

From as early as Cannon remembers, she recalls her grandmother seated behind a sewing machine. Through this influence she was sewing her own aprons and doll dresses by the time she was ten, and by the time she was 16, she started designing and make her own clothes.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Hartbeespoort Romantic Weekend Special

Price: R2,999
When: Weekends
Where: North West

Da Vinci Happy Hour

Price: Available on request
When: Weekdays
Where: Cape Town

Glenburn Spa Easter Package

Price: From R1,065
When: 18 -22 April
Where: Muldersdrift