Open cards at the banks
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.