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May 27 2012 11:21
There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.
May 27 2012 11:49
The country's 200 000-odd Tupperware agents are angry about the counterfeit products being sold as the real McCoy.
May 27 2012 13:09
The oversupply of golf estates has claimed another victim.
Johannesburg - Investment expert David Shapiro told a gathering of investors at a Kaya FM function on Tuesday evening that
the authorities in South Africa need to be commended for implementing the National Credit Act when they did, as the country can now manage credit better than many of its global counterparts.
The Act came into effect on June 1 2007, virtually at exactly the same time as the subprime bubble burst. The serious subprime mortgage crisis began in June 2007 when two Bear Stearns hedge funds collapsed.
"Our NCA came into force ahead of the market crisis - if the US had such an act they would never have been in this position," said Shapiro.
Shapiro adds that South Africa's banks are "in very good shape" as they rely on retail deposits rather than the wholesale market, like hedge funds.
"Ours are better anchored than some global banks. Also thanks to exchange control - they are very solid," he added.
"There is going to be a bonanza - where you will get some incredible assets cheaply," he said when referring to the eventual turnaround in the markets.
The National Credit Regulator (NCR) was established as the regulator under the National Credit Act 34 of 2005 (the Act) and is responsible for the regulation of the South African credit industry. It is tasked with carrying out education, research, policy development, registration of industry participants, investigation of complaints, and ensuring enforcement
of the act.
The act requires the regulator to promote the development of an
accessible credit market, particularly to address the needs of historically disadvantaged persons, low-income persons, and remote, isolated or low-
density communities.
The NCR is also tasked with the registration of credit providers, credit bureaux and debt counsellors; and enforcement of compliance with the Act.
The current crisis in the US is expected to cost the US fiscus between 6% and 7% of GDP. A $700bn bailout plan has not greased the market's wheels as the crisis takes root globally and fears of full-blown global recession bite. France has already announced a technical two-quarter recession.
- I-Net Bridge