Maarten Mittner on Fin24.com reports:

Discussions between the government, other role-players and heads of banks on how the financial crisis should be approached are on the right path, declared Sim Tshabalala, chief executive of Standard Bank SA, on Tuesday.

The discussions related to what banks’ lending polices should be in the current difficult conditions.

Tshabalala says the bank chiefs “firmly and thoroughly” communicated the message that their primary function is to pay back depositors’ money and ensure shareholders of a decent return.

In the process it is necessary for them to satisfy the needs of existing and new clients.

The discussions took place at Nedlac under the leadership of Ebrahim Patel, Minister of Economic Development. The heads of all four major banks – Absa, First National Bank (FNB), Nedbank and Standard Bank – were present, which indicates the seriousness of the issue. Further discussions are planned.

Trade union members have proposed that a fund be created to help consumers who are unable to repay their loans.

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