Banks caution against Constitutional amendment

CAPE TOWN - Friday is the final day of oral presentations on proposed amendments to Section 25 of the Constitution.

The banking sector, civil society organisations and unions are making their submissions.

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Banks have warned that an amendment to section 25 of the Constitution has the potential to undermine all property rights.

The Banking Association (Basa) has told the land hearings in Parliament that changes to the property clause could hurt the financial sector and the broader economy.

Basa is the industry body representing all registered banks in South Africa.

The Association says the changes will also undermine the country’s efforts to address the triple challenge of unemployment, poverty, and inequality.

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Nedbank CEO Mike Brown says the land reform issue is starting to have a negative impact on investment.

Banks have about R1,6-trillion in property loans, including land, commercial property, and home loans.

Source
eNCA