​Statement on recent reports regarding SARB Deputy Governor NaidooThe South African Reserve Bank (SARB) has noted media reports where SARB Deputy Governor and Registrar of Banks, Kuben Naidoo, was quoted as having ‘defended the lack of transformation in the banking sector.’This is misleading. In fact, the Deputy Governor’s comments in Parliament were that the financial sector is highly concentrated, which has both positive and negative effects. While a highly concentrated financial sector offers more stability, it also has its disadvantages. The SARB manages this conflict between stability and market concentration through effective and robust regulation of this sector, and relies on the relevant oversight of competition authorities. The SARB does not condone collusive behaviour of any sort. In pursuing its mandate, the SARB does not bow to any pressure, whether it is political or from the private sector.In regulating the banking sector, the SARB has many objectives which include: financial stability, financial inclusion, competition and transformation. In 2016 the SARB issued three new provisional banking licenses to Post Bank, Discovery and TYME.Regarding the SARB shareholding structure, we would like to clarify that SARB shareholders have no say on any policy decisions that the executive management of the SARB takes in implementing the SARB’s constitutional mandate.The SARB is not driven by a profit motive and functions in the broader interests of the country.Issued by:SARB Media Relationsmedia@resbank.co.za