Krutham executive chairperson Dr Stuart Theobald joins POWER 98.7 with Noluthando Mthonti-Mlambo to discuss rethinking SA’s banking regulatory regime.

“It’s difficult to be a small bank in South Africa. Small banks are subject to the same regulatory oversight as large banks but lack the resources to manage it effectively. The fixed costs of maintaining a compliance function to meet the demands of the Reserve Bank and other regulators put them at a disadvantage from the start. This extensive cost base exists before they even begin building their business and, as a result, many newer entrants struggle to establish a viable, long-term business model. This challenge is not unique to South Africa. It’s a problem that many jurisdictions around the world have been facing and it really comes back to the way we overhauled bank regulation after the global financial crisis of 2008,” says Theobald.

Listen to the full clip below: