Banks warn new debt-relief law will harm economy

Banks warn new debt-relief law will harm economy 🔒

19.8.2019

Banks warn new debt-relief law will harm economy 🔒

However, others say estimates of what the bill may cost the economy are overexaggerated, and it will have almost no impact on lenders

UPDATED 18 August 2019 - 23:22 SA’s new debt-relief law will ratchet up the cost of credit, strangling consumer spending with a devastating effect on an ailing economy, a banking lobby group said. The comments by the Banking Association SA (Basa) on Friday came a day after President Cyril Ramaphosa signed into law a bill that gives the National Credit Regulator (NCR) powers to write off unsecured loans — which do not need collateral — worth R50,000 for consumers found to be critically indebted and earning no more than R7,500 a month. B Premium This article is reserved for our subscribers. A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select. Already subscribed? Simply sign in below. Read more: Business Day

Credit Bill will restrict banks from lending money to the poor: BASA - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.The Banking Association of South Africa (BASA) has strongly criticised President Cyril Ramaphosa's signing into law of the National Credit Amendment Act on Friday, saying it will restrict the ability of banks to lend money to poor people.

Debt-relief law will further weaken economy, warns Banking AssociationHowever, others say estimates of what the bill may cost the economy are over-exaggerated, and it will have almost no impact on lenders

Ramaphosa signs controversial debt-relief bill into lawThe bill provides for the extinguishing of the debt of heavily indebted consumers who earn a gross monthly income of no more than R7,500

Debt-relief bill hits financial services stocks and retailersShares in financial services groups and retailers fell on Friday morning after the president signed the National Credit Amendment Bill into law 🔒

Credit bill means people might escape repaying their debt, banking group warnsBanks will either have to price in higher risks or avoid lending to low-income customers altogether, the Banking Association SA says



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