Leading banks have defended their lending policies in Parliament after Members of Parliament (MPs) accused them of racial profiling and insufficient transformation efforts.
On Tuesday, the country’s largest banks and lending institutions appeared before a joint portfolio committee on trade, industry, and finance to address concerns about their track records in promoting transformation.
During a rare meeting with MPs, CEOs from major banks, including FNB, Investec, Standard Bank, Capitec, and Absa, faced intense questioning about their lending practices. A key concern raised was the perceived racial bias in their credit approval processes.
African National Congress (ANC) MP Lufefe Mkhutu highlighted the historical context of these concerns, stating, “It’s a general theme amongst the members around the matter, the allegation about racial profiling, which, of course, is informed by history. The history is that Black people don’t have assets.”
In response, Standard Bank CEO Kenny Fihla defended the fairness of their lending criteria, including those influenced by artificial intelligence.
“We are at the moment comfortable that our lending criteria and decision processes are objective and fair. It doesn’t mean they are perfect.”
The committee has requested a follow-up meeting with the banking sector to further address unresolved issues related to transformation and credit accessibility.
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