How Stable Are SA Banks?
With the recent scandal at VBS Mutual Bank consumers have once again been reminded that banks can fail and collapse overnight.
Recent history in SA banking has taught consumers that banks are not as stable as they appear and that things can be deceiving. Good advertising and expensive offices do not make a bank secure. In the past, consumers have seen among others; Saambou, African Bank and very recently VBS Mutual Bank fold overnight.
‘banks can fail and collapse overnight’
In the case of VBS, the cause was the looting of billions of Rand by employees of the bank. African Bank fell when the real profit/loss figures came to light in the wake of reckless lending accusations and the jumping ship of upper management (who cashed out and made a run for it before the bank collapsed). [Read More About That Here]
Credit Rating agency Moodys regularly report on how ‘stable’ banks are. They recently had a look at SA banks (the top 7 local commercial banks).
Though the local banks are still rated as below investment grade, Moodys have now upgraded their outlook (where they see things going) from negative to stable. This is seen as a positive indicator that experts feel that these banks are not going to collapse. Recent SA legislation has been designed to help protect both consumers and banks themselves by preventing the banks from giving credit to consumers who cannot afford to repay that credit. This includes making the banks check on consumers income, other debts and monthly expenses.
Other processes have also been put in place to help the banks recover funds from financially strained consumers such as debt review. A new process that may become available to the unemployed who have debt is called debt intervention. This process also allows consumers to pay very little on debts each month or possibly even allows debts to be written off if they remain unemployed for many years.
How to Speedily Cancel Debit Orders With African Bank When consumers enter debt review they often have existing debit orders to cover debt repayments. Because the consumers debts will now all be paid via a Payment Distribution Agency (in 99% … read more
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African Bank Holiday Dates December 2017 – Jan 2018 African Bank’s Debt Review (Alternative Collections) department will be closed from the 22nd of December 2017 until the 2nd of January 2018. 22nd of Dec 2017 until 2nd of Jan … read more
Steinhoff Admit To “Accounting Irregularities” One of the biggest Top 10 Shares JSE listed companies in South Africa has been hit by a shares collapse to mirror what happened with African Bank back in 2014. Steinhoff has been one of the … read more
Public Protector To Investigate NCR Over Inefficiency Recently Parliament has been unsatisfied with the statistics they are receiving about consumers who are over-indebted. There was great hope that the creation of the National Credit Act (NCR) back in 2007 would … read more
African Bank Appoint New Head of Alternative Collections African Bank lump both debt review and administration together under one department, namely: Alternative Collections. They have just appointed one of their own to the post of Head of Alternative Collections. The … read more
Debtfree DIGI June 2016 The June 2016 issue of Debtfree Magazine is now out. Subscribers and Facebook and Twitter followers get a first read, as always. This month we look at one of the most daring cases of mass fraudulent … read more
NCR Investigate African Bank When the recent Myberg Report into the collapse of African Bank* came out, so did information about how the NCR had refused to assist the commission in their investigation into the causes of the banks collapse. This … read more