Tag archives: Banks

Government and banks offer debt relief for businesses affected by COVID-19

By Susan Bisset and Christina Pretorius on April 6, 2020 Posted in Banking

As South African businesses suffer the impact of the COVID-19 pandemic and national lockdown, small businesses can apply for debt relief from most of the major South African banks and several state programmes. The Department of Small Business has announced multiple interventions to assist small businesses. In addition to tax subsidies and incentives for compliant … Continue reading

Serious consequences if you use money mistakenly transferred into your account

By Aslam Moosajee (ZA) on February 11, 2015 Posted in Banking

In the digital age, more and more people are using electronic banking. The risks associated with electronic banking include typing errors which result in money being transferred to an incorrect account or more money being paid than is due. If a person receives money mistakenly transferred to their account and uses that money, knowing that … Continue reading

An increased costs trap – Practical advice for SA Financial Institutions

By Steve Chemaly and Desiree Reddy (ZA) on January 23, 2015 Posted in Banking

The Liquidity Coverage Ratio (LCR) was introduced with the implementation of Basel III, and is designed to ensure that financial institutions have the necessary assets on hand to ride out short-term liquidity disruptions. Two important elements of the LCR that are especially relevant to South African banks are: 1. The LCR in South Africa was … Continue reading

In the wake of ABIL: Proposed changes to Banks Act will give curator of a failed bank more options

By Bridget King on December 8, 2014 Posted in Banking

Proposed changes to the curatorship process will allow the transfer of all or a part of a bank’s business to another entity (this would be done as a transfer under s54 of the Banks Act). When African Bank Investments Limited (ABIL) was placed under curatorship on 10 August 2014, it was announced that some of … Continue reading

Credit ratings and acceptable banks

By Malibuye Cossie (ZA) and Katia Mengel on September 8, 2014 Posted in Banking

When rating agencies downgrade the credit ratings of South Africa’s banks or the country’s sovereign credit rating, whether justifiably or not, it raises interesting questions for the operation of project financing agreements. Definitions in finance documents designate a class of financial institutions as ‘acceptable banks’. This definition is commonly used in project finance transactions as … Continue reading

Class actions in the banking industry

By Yasmin Kadwa on September 2, 2014 Posted in Banking

The global banking industry has seen an increasing number of class actions being brought against it. In August 2014 an application for class action certification was launched against a number of Australian banks in New South Wales. The class potentially consists of hundreds of thousands of bank customers who were allegedly charged excessive credit card … Continue reading

The US Volcker rule, UK, South Africa and elsewhere

By Bridget King and Marc Van Heerden on August 7, 2014 Posted in Banking

The SA Reserve Bank is adopting a wait-and-see approach. The Volcker Rule came into force in the US in April 2014. The Volcker Rule is a federal regulation under the Dodd-Frank Act that, subject to exceptions, prohibits US commercial banks from engaging in short-term proprietary trading of many financial instruments for their own account. The … Continue reading

Sanctions on Russian and Ukrainian entities

By Desiree Reddy (ZA) on August 5, 2014 Posted in Banking

The European Union, the USA and Canada have imposed sanctions on a number of Russian and Ukrainian individuals and legal entities. The nature and scope of the sanctions are explained in this briefing. If a bank has entered into credit risk mitigation arrangements with Russian or Ukrainian counterparties, or relating to Russian or Ukrainian assets, … Continue reading

Track and trace usually sufficient for section 129 NCA notices – Sebola clarified

By Aslam Moosajee (ZA) on February 20, 2014 Posted in Banking

Section 129 of the National Credit Act does not require a credit provider to prove that a notice by registered post actually came to the attention of the consumer. If a consumer has elected to receive notices by post, a credit provider must prove: (a) the sending of the notice by registered mail; (b) that … Continue reading

Possible business rescue orders

By Riza Moosa on January 28, 2014 Posted in Banking

A court can issue an order placing a company in business rescue if it is shown that the company has reasonable prospects of being restored to a continued solvent existence or of achieving a better return for creditors and shareholders than would result from immediate liquidation. The supreme court of appeal made this finding in Oakdene … Continue reading