Abstract:
Based on the South African Reserve Bank’s object in ensuring the maintenance of financial stability and economic growth as well as considering key principles as outlined in The Code of Banking Practice, this dissertation analyses the role which banks play in the provision for financial relief, in the form of both lending and extending debt relief, during times of crisis such as the Covid-19 pandemic. This dissertation will commence by providing context into credit provisions by highlighting the responsibility placed on the banks by the Code as well as the National Credit Act. This will then be followed by the overview of the types of debt relief afforded to consumers as contained in other legislation such as the Insolvency Act and the Magistrate Court Act. I will also include the application of these various forms of debt relief. Further to this I will proceed to discuss the avoidance of reckless credit granting and measures taken by credit providers such as banks to avoid it. The focus will be mainly on individual consumers. The overall analysis will include deliberations as to how credit provisions and debt relief were applied during the pandemic as well as the introduction of other relief measures such as the Covid-19 Loan Scheme Guarantee.
