THE RESERVE BANK AND THE INVISIBLE BRIDGE

The Final Conclusion of the Audit

The final conclusion of the audit is that the South African financial governance architecture does not serve the public interest. The architecture serves the interests of the financial institutions. The architecture is an extraction cycle.

The architecture is not a competitive market. It is a concentrated system. The concentration gives the major banks significant pricing power. The concentration allows the major banks to extract rents from the public.

The architecture is not a fair system. The distribution of credit is skewed. The small businesses and the lower-income households are excluded from the formal credit system. The corporate sector and the higher-income households receive the majority of the credit.

The Bank is effectively a state within the state. The Bank is effectively a sovereign within the sovereign. The Bank is effectively a power above the democracy. The Bank is effectively a government that is not accountable to the governed.