The Banking Association South Africa (Basa) responded to Minister of Human Settlements Mmamoloko Kubayi’s accusations of racial profiling in home loan approvals, refuting the claims as unfounded and irresponsible. Kubayi had suggested that banks approved fewer home loans for previously disadvantaged individuals, advocating for penalties against non-compliant banks. Basa countered, asserting that banks follow strict business and risk criteria for lending, with race playing no role in these decisions. They emphasised that no member bank has been found guilty of systemic racism, and their primary responsibility is to protect depositors’ funds, which account for 75% of their financing.

Basa highlighted that home loans are often declined due to affordability (48%), adverse credit records (34%), or unacceptable security (13%), pointing to broader economic challenges such as unemployment as key factors. They reiterated that banks are incentivised to lend and do not turn away qualified customers.

Basa has been engaging with the Department of Human Settlements to improve affordable housing access through initiatives like the Title Deeds Restoration Programme and the First Home Finance Subsidy Programme. They support amendments to the Home Loans and Mortgage Disclosure Act (HLAMDA) but stress the need for data protection and clear regulations. Basa called for collaboration with the government to address housing barriers, such as faster deeds registration and making government land available for development, while also ensuring that any allegations of discrimination are fully investigated.