FINANCIAL INCLUSION: TREASURY PUBLISHES POLICY FRAMEWORK

FINANCIAL INCLUSION: TREASURY PUBLISHES POLICY FRAMEWORK

• 27 November 2023
• Financial Sector
• SA Legal Academy

National Treasury has published a financial inclusion policy framework informed by input received on a first draft released in 2020 for public comment.

This is noting that, according to the document’s executive summary, the term ‘financial inclusion’ implies that ‘all individuals and small, medium and micro enterprises (SMMEs) have access to and can effectively use a range of quality products and services provided by the regulated financial sector’.

In the South African context, ‘this includes reaching those segments of society … historically excluded from the formal financial sector, as well as those who underutilise financial products and services’.

Against that backdrop, the accompanying media statement draws attention to the policy framework’s three underlying objectives, which are to:

• ‘deepen’ individual and household financial inclusion
• ‘extend access to financial services’ for SMMEs, and
• ‘leverage a more diversified provider and distribution base for financial services in South Africa’.

Approved by Cabinet in August 2023, the policy framework is also expected to facilitate ‘better’ financial sector market conduct that is:

• ‘fair to customers’
• prevents ‘practices that undermine the integrity of financial markets’, and
• ‘build(s) confidence in the financial system’.

This is according to a press release issued at the time.

• policy framework
• National Treasury media statement
• response to comments received in 2020
• 8 August 2023 Cabinet media statement

Published by SA Legal Academy Policy Watch

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