Open cards at the banks

Finweek English Edition - - The main stories this week -

WHAT HAP­PENED SOUTH AFRICA’S COM­MER­CIAL BANKS have signed a vol­un­tary code of con­duct com­mit­ting them­selves to more re­spon­si­ble grant­ing of bank credit to the pub­lic. This fol­lows re­peated warn­ings by the SA Re­serve Bank that credit ex­ten­sion to the private sec­tor is still too high. The code will, for ex­am­ple, re­strict credit mar­ket­ing to cer­tain hours and re­quire banks to be more care­ful when grant­ing credit. DIE BURGER praised the coun­try’s com­mer­cial banks, but said it’s high time they worked on their neg­a­tive im­age in this re­gard. The Na­tional Credit Act comes into ef­fect in July, so it’s not re­ally as vol­un­tary as the banks would have us be­lieve, the pa­per says. Busi­ness Day says it’s still con­cerned about how much the re­tail sec­tor con­trib­utes to the debt stran­gle­hold and that they should also sign the code.

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