Pretoria - Unsecured loans in South Africa surged by 21% to
R381bn in the year to June, the Reserve Bank said on Wednesday, as banks
continue to plough into the profitable and potentially risky market.
The SA Reserve Bank also warned in its semi-annual review of
the financial system that planned global liquidity regulations in their current
form could hurt the economy.
South African banks have ramped up unsecured loans -
high-interest loans including credit cards and overdrafts that aren’t backed by
collateral - to offset weak corporate demand for credit.
Some analysts have warned there may be a bubble forming.