(Refiles to change dateline)
PRETORIA May 29 (Reuters) – South Africa’s Reserve Bank is
not unduly alarmed at the rise in unsecured lending but is
monitoring the development closely, Deputy Governor Daniel
Mminele said on Tuesday.
Growth of unsecured loans – which don’t require collateral
and are riskier and more lucrative for banks – has surged over
the last year in Africa’s top economy, as lenders push to offset
weak corporate demand for credit.
“This is a development we are monitoring carefully but it is
not something that at this stage raises concerns in terms of the
actual proportion of unsecured lending compared to the overall
loan books of banks,” Mminele said at a forum at the Bank.
(Reporting by Tshepo Tshabalala and Stella Mapenzauswa)
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