South Africa: Trade and Industry Minister Patel to Relax Bank Regulations to Help Clients Take Covid-19 Hit

(file photo)
analysis

New regulations are expected to be gazetted that will pave the way for commercial banks to share information about the best ways to restructure soured loans or share resources about protecting banking services in SA.

Trade and Industry Minister Ebrahim Patel has signed new regulations that will allow commercial banks to help financially distressed customers in a co-ordinated manner as the impact of the coronavirus outbreak in SA is expected to have a devastating impact on an already fragile economy.

By Tuesday 24 March 2020, at the earliest, or later in the week, the new regulations are expected to be gazetted, paving the way for commercial banks to, among other things, share information about the best ways to restructure soured loans or share resources about protecting banking services in SA. The banks will be able to do so without fears that they are breaching competition laws or gaining a competitive advantage over each other.

Since President Cyril Ramaphosa declared the National State of Disaster on 15 March over the Covid-19 outbreak, commercial banks have been in talks with Patel, asking him for an exemption from certain provisions of the Competition Act.

Before Patel signed the new regulations, the Competition Act...

More From: Daily Maverick

Don't Miss

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.