Chairperson, because this is my maiden speech as DA Finance Spokesperson, I assume that the hon Minister of Finance and the rest of the House will listen in the respectful silence normally accorded to maidens. [Laughter.]
Perhaps you will allow me to start by saying that I have been happy serving on the Portfolio Committee on Finance for those last two months. The hon Mr Nhlanhla Nene is an exemplary chairman and he and his members have made me feel very welcome and at home and I'd like to thank them for that. You'll be glad to know, Chairperson, that I will not detain you for very long this afternoon.
There are just two points I would like to make: The first is to say that South Africa's banking structure forms part of a globalised economy. It is absolutely right that we should shoulder the responsibilities and make the most of the opportunities that arise. Basel II requires measures to strengthen the soundness and stability of the international banking system and we, through this Amendment Bill, seek to strengthen the South African banking system.
The second point that I wish to make is that the subject of bank stability is very topical and relevant, given the events of the last week and the consequent turmoil on international markets. These were stabilised by unexpected action by the US Federal Reserve. The loss of confidence in certain US financial institutions resulted from what are euphemistically called subprime loans. What they really are, are loans that had inadequate security and borrowers who could not afford to repay them - that's what they really were. The good news is that there was and is no banking crisis in South Africa. There was no run on any South African bank and we know that if there had been the reserve bank would have been ready, willing and able to step in immediately to help. We as a party might have reservations about the extent of bank fees and charges and we also might have greater ambitions about more of our people being able to join the modern economy by having access to banking services, but one thing is certain and that is that South Africa has a modern banking system on par with the best in the world. It is reliable and it is a positive factor in making our country able to compete for investment funds, locally and internationally. The DA supports this Bill.