Unsecured loans - which are not backed by collateral and therefore riskier and more lucrative for banks - totalled R453bn in March 2013, an increase of 24% from a year earlier, Lesetja Kganyago said.
"Measured against the total banking assets of R3.6 trillion, bank exposure to unsecured lending still remains non-systemic and do not pose any threats to the stability of the banking system as a whole," Kganyago told reporters at a briefing.
Analysts and investors have been increasingly worried lenders, especially African Bank Investments [JSE:ABL] and Capitec Bank Holdings [JSE:CPI], could be hit by a wave of souring loans after years of rapid growth in consumer lending.
African Bank, which specialises in
unsecured loans to low-income borrowers, posted a 26% drop in first-half profit
this month, sparking a rout in its share amid concern the lending boom is
starting to unravel.