The DA will write to the Chairperson of the Portfolio Committee on Trade and Industry, Ms Joanmariae Fubbs, requesting that the National Credit Regulator (NCR) brief Parliament on what action it took to prevent reckless lending by the country’s major credit providers, particularly African Bank, now under curatorship.
The bank was placed under curatorship on Sunday by SA Reserve Bank governor Gill Marcus.African Bank received a R7 billion bailout in an attempt to nurse it to financial stability.
It is reported that for numerous years, debt counsellors have continuously lodged complaints relating to reckless lending at banks, including at African Bank.
According to sections 14 read with section 15 of the National Credit Act, the NCR is charged with regulating all credit providers within the industry and monitoring the credit market to ensure that providers comply with the Act.
The credit regulator needs to provide clarity on:
• Its monitoring activities in the credit industry and more especially at African Bank;
• Whether the regulator was aware of financial instability at Africa Bank; and
• What steps, if any, were taken to prevent the current crisis at African Bank.
In order to ensure the proper functioning of our economy and in a bid to avoid any further instability in the financial sector, all must be done to ensure that effective oversight occurs.
The DA will continue to champion the need for an appropriately functioning credit industry.