As the United States of America enters its worst financial crisis since the Great Depression of the early 1900’s, South African banks and other credit providers remain relatively un-scathed, thanks largely to the strict regulations that govern credit extension in this country.

While hundreds of billions of dollars are being pumped into the American, British and Chinese economies in an attempt to eliminate the threat of a global financial meltdown, the well-regulated South African banking sector has been shielded from direct fall-out from the global credit crisis.

Although SA banks are currently experiencing the ‘tough part of a normal banking cycle’, experts believe interest rates have peaked and will dip in 2009.

According to National Credit Regulator’s (NCR) Chief Executive, Gabriel Davel, South Africa is in a far stronger position than the UK and the US to withstand the economic downturn because of its rigorous regulatory environment.