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Standard Bank unveils measures to mitigate COVID-19 impact on its customers
As South Africa braces itself for President Cyril Ramaphosa’s address this evening the number of cases have risen to 402. Businesses are in distress and many are looking to the banks for relief. One of the first to offer assistance to its clients was Standard Bank. Funeka Montjane, Chief Executive, Personal and Business Banking, South Africa at Standard Bank joins CNBC Africa for more
Mon, 23 Mar 2020 15:37:08 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Standard Bank offers payment holidays to small businesses and students to provide financial relief during the pandemic.
- The bank remains open to reassessing and extending its support beyond the initial three months if necessary.
- Standard Bank emphasizes the importance of collaboration and early communication with clients to find personalized solutions for financial challenges.
As South Africa braces itself for President Cyril Ramaphosa's address to the nation, the country is grappling with the escalating number of COVID-19 cases, which have now reached 402. The business community is in distress, with many enterprises looking to financial institutions for support and relief. One of the major banks in the country, Standard Bank, has stepped up to offer assistance to its clients during these challenging times. Funeka Montjane, the Chief Executive of Personal and Business Banking, South Africa at Standard Bank, sat down with CNBC Africa to discuss the measures the bank is taking to mitigate the impact of the pandemic on its customers.
In the interview, Montjane highlighted that while the banking industry is engaged in broader discussions with the government through the Banking Association, the initiatives announced by Standard Bank were driven by the bank's own interest in supporting the community. She emphasized that the steps taken by Standard Bank are likely to be mirrored by other banks and businesses in South Africa with a patriotic interest in helping the economy weather the storm.
Standard Bank's focus on providing relief extends to small businesses and students, with specific programs designed to assist these vulnerable groups. Montjane explained that customers in good standing falling under these categories will automatically qualify for a payment holiday of up to three months, starting from April 1st. Small businesses with turnovers of up to 20 million Rand are also eligible for this support.
Acknowledging the uncertainty of the current situation, Montjane reassured customers that Standard Bank remains open to reassessing and extending its support beyond the initial three months if needed. She underscored the importance of collaboration and unity in facing the challenges posed by the pandemic, emphasizing that working together is essential for navigating through these unprecedented times.
When asked about the potential impact on bad debts and impairments, Montjane pointed out that while these are outcomes of overall performance, the small business portfolio at Standard Bank forms a relatively small part of the bank's total book. She expressed confidence in the resilience of South African businesses, drawing on past experiences of overcoming economic hardships. Montjane recounted the strategies employed during the global financial crisis and highlighted the willingness of customers to engage with the bank to find personalized solutions.
Looking ahead, Montjane hinted at ongoing discussions within Standard Bank about potentially extending similar relief measures to other industries that are expected to be severely impacted by the crisis. She emphasized the importance of early communication between the bank and its clients, stressing that proactive dialogue can lead to effective solutions for mitigating the financial challenges faced by businesses.
Overall, Standard Bank's proactive approach to supporting its customers during the COVID-19 crisis underscores the bank's commitment to serving the community and playing a vital role in safeguarding the economy. As businesses across South Africa navigate the unprecedented challenges brought about by the pandemic, financial institutions like Standard Bank are stepping up to provide much-needed assistance and stability in these uncertain times.
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