The entire banking industry has been working for over a year to ”seamlessly and effectively” implement the new National Credit Act, the Banking Association of South Africa said on Monday.
In a statement, the association said it fully supported the Act, which comes to in effect on July 1.
On Monday, Business Day reported that the industry was likely to fork out R1,5-billion to implement the Act, and also raised concerns that the implementation of the Act could throw the banking system into chaos.
Cas Coovadia, managing director of the association, however, said the industry have worked for over a year to implement the Act and supported it.
”The Act is a major development in banking for us, and will facilitate a more informed credit decision-making process by lenders and borrowers, thus having a positive effect on debt levels in the country,” he said.
The Act was intended to prevent consumers from borrowing more than they can afford. It compelled credit providers to lend responsibly. — Sapa