{"id":10017,"date":"2012-04-18T04:20:32","date_gmt":"2012-04-18T02:20:32","guid":{"rendered":"http:\/\/www.myza.co.za\/04\/update-1-rise-in-s-africa-unsecured-lending-a-worry-cbank\/"},"modified":"2012-04-18T04:20:32","modified_gmt":"2012-04-18T02:20:32","slug":"update-1-rise-in-s-africa-unsecured-lending-a-worry-cbank","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/update-1-rise-in-s-africa-unsecured-lending-a-worry-cbank\/","title":{"rendered":"UPDATE 1-Rise in S.Africa unsecured lending a worry-cbank"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>* Reserve Bank says unsecured lending growing too fast<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>* Local financial companies however still sound<\/p>\n<p> (Adds background)<\/p>\n<p><span><\/span><\/p>\n<p><span class=\"articleLocation\">JOHANNESBURG, April 17<\/span> (Reuters) &#8211; Unsecured lending in<br \/>\nSouth Africa is growing too fast, Reserve Bank Deputy Governor<br \/>\nLesetja Kganyago said on Tuesday, in the latest sign policy<br \/>\nmakers are worried about rising levels of borrowing by highly<br \/>\nindebted households.<\/p>\n<p><span><\/span><\/p>\n<p>Recent data has pointed to local banks increasingly giving<br \/>\nout loans without security to consumers already struggling to<br \/>\npay their bills.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;As a regulator we are concerned about the growth in<br \/>\nunsecured lending. It is growing and it is growing too fast,&#8221;<br \/>\nKganyago told a forum on the impact of the euro zone crisis on<br \/>\nAfrica.<\/p>\n<p><span><\/span><\/p>\n<p>A day earlier, Finance Minister Pravin Gordhan also noted<br \/>\nthe significant growth in the loans, saying it would be a big<br \/>\nworry if it was feeding solely into consumption as this would<br \/>\nfuel inflation.<\/p>\n<p><span><\/span><\/p>\n<p>Until recently, unsecured lending &#8211; which is riskier for<br \/>\nbanks and thus more expensive for borrowers &#8211; was dominated by<br \/>\nsmaller lenders, but now the bigger banks also looking for a<br \/>\nslice of the high-margin business.<\/p>\n<p><span><\/span><\/p>\n<p>The rand value of unsecured credit granted increased was up<br \/>\nmore than 57 percent in the last quarter of 2011 compared with<br \/>\nthe same period the previous year, the latest official data<br \/>\nshows.<\/p>\n<p><span><\/span><\/p>\n<p>Kganyago also said the economy remained vulnerable to the<br \/>\ndownturn in Europe, a major trading partner for South Africa.<\/p>\n<p><span><\/span><\/p>\n<p>(Reporting by Stella Mapenzauswa; Writing by Xola Potelwa;<br \/>\nEditing by Jon Herskovitz)<\/p>\n<p><span><\/span><\/p>\n<p class=\"copyright\">\n<p>         \t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"<p>* Reserve Bank says unsecured lending growing too fast * Local financial companies however still sound (Adds background) JOHANNESBURG, April 17 (Reuters) &#8211; Unsecured lending in South Africa is growing too fast, Reserve Bank Deputy Governor Lesetja Kganyago said on Tuesday, in the latest sign policy makers are worried about rising levels of borrowing by [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-10017","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/10017","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=10017"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/10017\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=10017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=10017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=10017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}