caveat legal logo

Specialist Fields

Banking Law & Finance Law

gold circle

We assist businesses in all areas of Banking & Finance Law

Banking & Finance Law is the law pertaining to banking and other finance-related transactions. It covers a wide range of transactions in the banking & finance sector and includes private equity investments, corporate finance, structured finance, project finance, asset finance, preference share funding and lending transactions such as leveraged finance, debt structuring and cross-border finance.

Our experienced Banking & Finance specialists assist with drafting and negotiating related finance agreements including security documents, and are able to advise on exchange control issues and legislation relevant to lending transactions.

Lending is an important part of economic activity, and I enjoy assisting banks and other lenders as well as borrowers to ensure that they get the most out of the opportunities that it presents.

- Karin Krisch, Caveat Panel Member

caveat legal panel attorney karin k


virgin money logo
sanlam logo
sasfin logo
bayport logo
bank zero logo
the peoples fund logo

Banking & FINANCE Regulations

Banks in South Africa are regulated under the Banks Act, 1990 and its regulations. Other relevant legislation includes the Mutual Banks Act, 1993 and the South African Reserve Bank Act, 1989. References in the Banks Act to the Registrar of Banks have been replaced with the Prudential Authority established under the Financial Sector Regulation Act, 2017 (FSRA). The Prudential Authority, together with the South African Reserve Bank, oversees the operation of local banks in South Africa, as well as the branches and representative offices of foreign banks.

Banks are also required to comply with financial sector legislation such as the Financial Advisory and Intermediary Services Act, 2002 (FAIS) and the National Credit Act, 2005 (NCA), as applicable.

Finance Law & Regulations

The Financial Intelligence Centre Act, 2001 (FICA), sets out requirements for banks and accountable institutions regarding Know-Your-Customer (KYC) checks. The Financial Advisory and Intermediary Services Act, 2002 (FAIS) regulates the provision of a variety of financial and intermediary services. 

The Financial Sector Conduct Authority (FSCA), established under the FSRA, is the dedicated market conduct regulator for the industry and replaced the previous Financial Services Board.

In addition, the National Credit Regulator, established under the National Credit Act, 2005, regulates the provision of credit to borrowers in South Africa, with the aim of promoting the development of an accessible credit market.

Banks and financial institutions are also subject to the Protection of Personal Information Act, 2013 (POPIA) with regard to data protection and the processing of personal information.

Legal Advice for Banking & Finance Law

Our banking and finance team assists all players in the capital markets, including private equity and venture capital investors, asset managers and major financial institutions, as well as companies entering into ad hoc finance transactions in the ordinary course of business.

We are able to advise on a wide range of financing transactions including secured and unsecured lending, capital markets issuances, trade finance, consumer credit, acquisition finance and syndicated lending. We also advise on compliance with banking and financial sector legislation.


Frequently asked questions on Banking & Finance Law

A loan agreement should specify the amount of the loan, the applicable interest rate and the repayment terms. Any security for the loan should also be specified, and additional warranties and undertakings should be included and tailored according to the context.

Not necessarily, interest-free loans can be concluded, but tax advice should be sought beforehand.

The National Credit Act (“NCA”) may apply if the loan is made to an individual or SME. In the case of cross-border loans, the regulations under the Currency and Exchanges Act, 1933 may be applicable. 

The law as it applies to financial transactions aims to promote a fair, stable and accessible market to facilitate economic prosperity.

We provide opinions on aspects of finance law, advise on the structuring and documentation of financial transactions and compliance with applicable legislation, and assist clients in negotiating financing terms.

Companies should contact a Banking and Finance lawyer whenever they raise debt funding, whether in the context of a larger transaction or on a stand-alone basis. Counsel can help negotiate a fair deal for the borrower and ensure that the financing terms are legal and on-market. Advice should also be sought when a company lends funds, to ensure that regulatory requirements are met, the lender’s rights are protected, and any security rights are valid.

A banking & finance lawyer’s fees will depend on his / her level of experience. A junior corporate lawyer will therefore be cheaper than a senior corporate lawyer. However, a senior lawyer will usually take less time than a junior lawyer to complete the same work, and his / her years of experience will likely add more value to the client overall. In addition, lawyers fees are impacted by the type of organisation they work for. Lawyers working at traditional law firms with large buildings and teams of support staff usually need to add these overheads to their fees, making them significantly more expensive than equally qualified lawyers working through a virtual platform like Caveat.

Caveat is a virtual organisation with lawyers qualified in many jurisdictions and based in locations across the world.

In every high-stakes transaction, there is an inevitable hot zone. That time where tempers are fraying. As a lawyer, I bring calm, diplomacy and an experienced perspective to negotiate my clients through that. You can structure excellent deals, but it all comes down to getting them agreed – to finding the common ground and guiding people towards it. Cash needs to flow and counterparties need to work together happily long after the lawyers have done their part.


- ARABELLA BENNITT Caveat Panel Member

Arabella Bennett

Get in Touch

"*" indicates required fields

Optimized by Optimole