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...