We request your organisation to discuss these documents and develop positions on the issues raised therein as part of preparations for the Briefing and Consultative meeting. We look forward to your speedy and positive reply. Please confirm your attendance with Thelma Mani at our head office by 08 September 2000. In summary, this is some of the context informing the operation of the financial sector in South Africa. Even though the poor take their money to the private commercial banks, these banks primarily deny credit to poor and working people through stringent requirements for opening bank accounts and accessing loans for basic needs.
Banks continue to fund luxury expenditure by the rich.
Commercial banks also do not provide sufficient resources to SMMEs and the informal sector. If these received sufficient funding at affordable interest rates, there would be a difference in terms of job creation and development initiatives by our people. Once poor and working people are in the commercial banking system, they get punished even more through high bank charges and interest rates. These contribute to the reduction of the cash power our people have. Many townships, rural areas and inner city areas where basically poor black people live are redlined for housing and commercial loans by banks.