The Banking Association of South Africa (BASA) on Friday said the country’s banks had committed themselves to providing help to financially distressed consumers who have been negatively impacted by the Covid-19 virus.
The BASA board met on Wednesday to consider the industry’s response to the Covid-19 pandemic and the lock-down announced by President Ramaphosa.
BASA managing director Cas Coovadia said the organisation’s members have agreed to do all in their power to “responsibly” support their customers and preserve the safety and soundness of the country’s financial system.
“Customers in good standing – those that were up to date with commitments and have historically conducted their relationship with banks responsibly – who experience financial challenges as a result of Covid-19, should contact their banks who will, on a case-by-case basis, assist with appropriate solutions,” Coovadia said.
“These solutions could include suitable payment deferrals, the restructuring of debt, the provision of small and medium enterprise bridging finance and liaising with government and others who are providing additional support mechanisms.”
BASA is governed by a Board of Directors comprising CEOs of Nedbank, ABSA, First National Bank, Standard Bank and Investec, who represent five of South Africa’s big banks.
The Minister of Trade, Industry and Competition Ebrahim Patel has published a government gazette, which allows banks to have a collective discussion on how to strengthen their response to the Covid-19 pandemic.
