JOHANNESBURG — South Africa's National Treasury is considering the creation of a scheme to encourage bank lending to small businesses and consumers as one response to the coronavirus outbreak, central bank deputy governor Kuben Naidoo told Reuters on Tuesday. Naidoo, also head of the Prudential Authority, said one option was a type of "funding for lending" scheme. Such programmes try to incentivise bank lending, such as that introduced in 2012 in the United Kingdom following the 2008 financial crisis"We're not the primary drivers, but I know the treasury is considering these issues," Naidoo said by phone. "The central bank would be involved, our law doesn't allow us to lend unsecured, but as part of a broader design of a scheme we're prepared to be involved." South Africa's treasury said in a statement it was exploring all funding avenues to finance cornavirus-related programmes and measures aimed at addressing the pandemic.

Source: International New York Times April 07, 2020 10:56 UTC