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85% of bank junior management is black

IOL / 10 MARCH 2020 - 19.01 / PHILIPPA LARKIN

JOHANNESBURG - Junior management at South African banks was 85percent black, according to the Banking Association of South Africa’s 2019 Transformation in Banking Report.

“This is important, as it means there is a pipeline of young black talent and experience who will transform the management and executive ranks of the industry in coming years. Opportunities for advancement in the industry remain, despite a reduction in headcount in some operations,” it said.

Junior management at South African banks was 85percent black, according to the Banking Association of South Africa’s 2019 Transformation in Banking Report.

The South African Reserve Bank had issued new banking licences, increasing competition and expanding the banking industry, it said. Although the industry had gone beyond what was required by the Financial Sector Code (FSC) and the Black Economic Empowerment Codes of Good Practice, the performance of the industry was uneven and it must “do better”.

The report found that black ownership measures, such as voting rights, had declined over the past three years, but remained above the FSC targets of 25percent, with the exception of black economic interest. “The decline in black economic interest is mostly due to the exit of shareholders from bank empowerment schemes,” it found. Ownership measures were likely to continue to drift down in the coming years, as black investors diversify their portfolios. “While this leads to a reduction in black ownership of banks, it adds value to the economy, as shareholders apply their realised value in other sectors,” the report said.

In 2018 large banks’ balance sheet exposure to black small and medium enterprises (SME) increased by 13percent to R28.8billion; black agricultural financing increased by 41percent to R4.5bn, while spending on supplier development almost doubled to R795million.

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LINK : https://www.iol.co.za/business-report/companies/85-of-bank-junior-management-is-black-44496401

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