"Stronghold of four big banks a threat to democracy" Co-operative Banks expert

Competition Commission head, Thembinkosi Bonakele has made comments saying regulation should be eased to allow for second-tier banks to allow new entrants to participate in the highly concentrated banking sector.

Desmond Golding, Chair of the Co-operative Banks Development Agency, says co-operative banking means a group of people coming together for a common purpose, such as establishing a business venture that will benefit all members.

So therefore a co-operative bank would be a form of saving by those members who will then be able to borrow against their own savings without approaching a commercial bank.

Desmond Golding, Chair of the Co-operative Banks Development Agency

They can also be able to lend out the money they would have saved up for amongst themselves.

Desmond Golding, Chair of the Co-operative Banks Development Agency

Golding adds that co-operative banking is not a uniquely South African concept, although perceived as micro business outfits.

He says co-operative banks in many countries all over the world, run big businesses and insurances and big banks.

During the 2008 crisis, they did not suffer as much as your conventional banks because of the shared risk factor.

Desmond Golding, Chair of the Co-operative Banks Development Agency

Golding says it is important to support co-operative because the stronghold of the four big banks is a threat to democracy and financial stability in South Africa.

Listen to the full interview in the audio below:


This article first appeared on 702 : "Stronghold of four big banks a threat to democracy" Co-operative Banks expert


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