Fin24

Sarb not alarmed by unsecured lending

2012-05-30 08:17

Pretoria - The 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.

 

Comments
  • SarelJBotha - 2012-10-24 10:45

    This should be an alarm that will wake them up: Those holding jobs or earning a wage have the fullest right to approach the employer as a collective and demand, not just a higher salary as in the recent past and present, but to also divert the personal taxes to the same type of trust account that I as a business owner use for this purpose. Doing it through a tax lawyer keeps it all above board. Not one person doing this that I have contact with has had any hassles from SARS since notifying them of such action. Their tax remittance gets done as usual, just no funds paid to SARS. The onus falls on SARS to implement legal means to recover the money, and that opens the door to dispute the way our money is handled and spent. This is the only way we can hurt the government where it counts and give the taxpayer(4.7 million) more control over what they and the non taxpaying majority(45.3 million) do with the money. Vat and levies are just drops in the bucket to the government, they survive on personal and company tax. We all just need to grow some backbone and act together.

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