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National Credit Regulator statement on African Bank Limited Print E-mail
Wednesday, 13 August 2014

The National Credit Regulator (NCR) welcomes the measures announced by the South African Reserve Bank (SARB) with regards to African Bank Limited which bring added stability to the South African credit market.

The NCR has for some time engaged African Bank due to concerns about their lending practices and their impact on consumers. We investigated the bank last year for reckless lending and entered into a settlement agreement in terms of which the bank paid R20-million.

The NCR has in 2011 expressed concern about the sustained growth in unsecured lending in an environment where many consumers had impaired credit records. Unsecured lending has been declining since the latter part of 2012.

African Bank’s recent growth in impairments and bad debts went a lot further than expected. Consumer over-indebtedness is not only caused by reckless lending and borrowing, but also micro and macro economic factors that have a direct impact on the debt repayment capacity of consumers, some of which occur after the granting of credit.

The NCR has been and continues to work closely with the SARB in ensuring sound and fair lending practices across the full spectrum of banks providing credit. The NCR will engage the Curator of African Bank in an effort to ensure that the bank continues to serve its clients in a manner which is fair and equitable in terms of the National Credit Act.

As announced by the SARB, African Bank remains open for business. Consumers should act responsibly and continue paying off their loans.

(Source - NCR Press Release)  


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