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Our findings will have serious implications for the sector

The report into the Competition Commission enquiry into whether bank charges and access to the national payment system thwart effective competition for consumers is to be delayed according to Enquiry Chairperson Thabani Jali.

“The proceedings of the enquiry hearings were transparent and well-covered in the media. I believe that this has been beneficial to consumers and the sector as it has raised awareness and led to constructive self-reflection on the part of the banks.”

Hearings covered ATM Charges, interchange and payment cards, access and interoperability, and market power and pricing.

“The public process is now complete and we have made considerable progress writing our report,” said Jali. “The sheer volume of information received has enabled us to analyse the anti-competitive outcomes we have noted." 

"Our findings will have serious implications for the sector, therefore, we feel it is prudent to take time to produce a thorough and well considered report rather than rush this final stage to meet a self-imposed deadline.”

Jali also pointed to submissions now coming in from relevant government departments that require similarly thoughtful attention.

Background

The Competition Commission initiated the enquiry in response to growing public and governmental disquiet stemming from an independent report it commissioned earlier, The National Payment System and Competition in the Banking Sector.

The report identified competition concerns around access to the NPS; the hearings were an attempt to gather sufficient information to determine whether the Competition Act had been contravened in any way.

The enquiry probed:

• the level and structure of charges made by banks, as well as by other providers of payment services, including:
  • the relation between the costs of providing retail banking and/or payment services and   the charges for such services;
  • the process by which charges are set; and
  • the level and scope of existing and potential competition in this regard;
• the feasibility of improving access by non-banks and would-be banks to the national payment system infrastructure, so that they can compete more effectively in providing payment services to consumers;
• any other aspect relating to the payment system or the above-mentioned charges which could be regarded as anti-competitive.