Sarb not alarmed by unsecured lending

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.