Contemplated Actions

The banking sector and the state can collaborate in the field of human settlements and spatial development to:

  • Give practical effect to provisions for housing finance contained in the Financial Sector Code (FSC) and to review housing policy and regulatory frameworks to better realise constitutional housing rights and a profitable housing market for both funders and asset owners.
  • Rethink and re-envision South Africa’s urban and rural towns and cities, through participating in the development of a national spatial framework and contributing to building state capacity to resolve current deficiencies in integrated development planning within the local government system.
  • Formulate innovative financing instruments for the state to implement chosen high impact catalytic interventions to achieve spatial transformation that enhances economic competitiveness, environmental sustainability and offer South Africans greater choice of where to live and work.
  • Better deal with the lack of institutional capacity, implementation instruments, co-ordination and trust between different interest groups which reduces the willingness of economic players (including banks) to commit to the kind of long term financing and investments needs to achieve sustainable urban and rural growth and the associated economic spinoffs. This long-term perspective is critical, because the national spatial transformation challenge is a long-term project with massive investment in fixed assets, in all kinds of infrastructure, as well as housing and economic facilities and amenities.
  • Participate in the creation of a national observatory for spatial data assembly and analysis. The banking sector possess large, sophisticated and well- developed data sets, some of which are already mapped geo-spatially for both housing and property as well as core banking infrastructure, that can be leveraged for participating in, and building capacity in the development and maintenance of a national observatory for spatial analysis. Such actions can contribute to achieving both state-led social imperatives and development of profitable products.
  • Finance and dynamically collaborate with human settlements co-operatives, including those involved in construction, development, maintenance, skills development and spatial greening.

Participate in the Mortgage Default Insurance Scheme for a national R1bn housing guarantee fund.

Human Settlement Info

© The Banking Association South Africa 2019