Protection against discrimination in credit application and granting
The right to be given reasons for credit being refused
The right to information relating to the agreement in an official language
The right to the protection of confidential information
The right to choose whether to receive certain documents and
electronically or in paper
It educates the consumer about the cost of credit
B
NCR Role in terms of Regulatory Role
Improved standards of consumer information
General regulation of consumer credit
Prohibition of certain unfair credit and credit marketing practices
Establish national norms and standards relating to consumer credit
Debt reorganization in case of over indebted ness
Carries out education and research ,develop policies,register industry
participants ,investigate serious compliants and ensures the enforcement
of the Act
2a.
Monetary Policy Objectives
Price stability
Economic growth
Positive balance of the balance of payments
, Maintain a stable exchange rate
Equitable distribution of income
b. Discuss three monetary policy instruments
Accomodation policy
It refers to the interest rates that the south African Reserve bank(Central
Bank)lends commercial banks when they borrow
Open Market Operations
It involves the buying and selling of securities so as to influence the size of
money supply
Use of Exchange rates
The South African Reserve bank intervenes in the foreign exchange market
so as to stabilize an exchange rate with the aim of protecting the value of
the currency from depreciation or inflationary pressures
Ways in which the South African Reserve Bank finances the liquidity of
banks
Borrowing from their own cash reserves with SARB under the averaging
principle
Borrowing from the SARB through a repurchase agreement
Borrowing from the central bank through standing facility at a penalty
margin that is above or below the repo rate.
Buying of a foreign exchange swap from the commercial banks so as to
increase the size of the money supply
Banks receive cash from the SARB based on the market value of securities
that act as the underlying instruments for repurchase agreement such as
SARB debentures, treasury bills, and government stock.
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