n Without Prejudice - Bank on moneylending : not the law reports




The applicant alleges that the current financial crisis has been caused and perpetuated by the reluctance of banks to lend money to each other and to the borrowing public. He has asked for an order compelling the major banks, jointly and severally, to lend him R10 million. The respondent, who represents all the major banks, contends the banks have no money to lend. So short are the banks of cash that one bank is reputed to have diversified into the sale of a breakfast cereal called . You eat it dry (without any liquidity) and it goes 'pop' in your mouth with any preceding snap or crackle. The story is probably apocryphal but it nicely illustrates the problem.


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