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May 24 2012 17:31
The Reserve Bank will maintain current interest rates, and a sizeable reduction in the local petrol price is expected, says governor Gill Marcus.
May 24 2012 15:29
The Reserve Bank will maintain current interest rates, says governor Gill Marcus.
May 23 2012 22:00
Economic liberation or the lack thereof is the most divisive issue in the country, according to a survey.
Johannesburg - Absa's tight fist in granting credit is eroding its market share.
Standard Bank's market share is also shrinking, particularly in the housing mortgage market, because of disputes with mortgage originators.
Nedbank is the big winner, while FirstRand is gradually expanding its market share.
According to a report by Standard Bank?s equity research division, in May Absa had the largest average contraction in advances, with 0.44 of a percentage point.
In private and overdraft facilities the group saw a hefty loss of market share - 0.2 of a percentage point. In home loans its loss was 0.8 of a percentage point.
Traditionally, with a market share of more than 30%, Absa has been the largest player in the home loan market, but since the middle of last year it has been restricting its credit growth.
The data show that Nedbank is the biggest gainer of market share, with growth of 0.19 of a percentage point while the other banks are drifting.
Its market share in home loans has appreciated by 0.6 of a percentage point, in private overdraft facilities by 0.29 of a percentage point, and in instalment finance by 0.26 of a percentage point.
Standard Bank in effect gained market share in overdraft loans, but lost a significant 0.2 of a percentage point in home loans and 0.15 in instalment finance.
Between 2003 and 2007 Standard Bank significantly increased its market share in mortgages and credit cards.
This banking group no longer uses the services of mortgage originators to obtain loans on clients' behalf. The reason that it gives is that the fees mortgage originators demand are too high.
Nedbank's campaign to enlarge its market share continues unabated. Doug Hardie, the chief executive of client services, says the group is now undertaking to take over clients? overdrawn accounts from other banks with a single enquiry.
Prospective clients are asked to test Nedbank's promise. "If Nedbank does not succeed with the transfer, it undertakes to donate R50 to a charitable organisation," says Hardie.
- Sake24.com
For more business news in Afrikaans, go to Sake24.com.