Banks more cautious on lending

The Competition Tribunal is taking on 17 local and international banks for allegedly manipulating the currency market. The banks are accused of collusion and price fixing dating back as far as 2007.

South African banks

Sethembiso Zulu / eNCA

JOHANNESBURG - South African banks may have to make more provisions to deal with customers defaulting on loans.

This as the coronavirus impact weighs on the struggling economy.

Bloomberg quotes deputy Reserve Bank governor Kuben Naidoo as saying estimates show banks have non-performing loans and have all raised their provisions.

READ: Debt is our weakness, says Mboweni

Earlier this week, African Bank said it had become more stringent in its criteria when assessing loan applications.

African Bank joins the likes of Absa and Discovery Bank, who recently told investors that they'd rather put brakes on growing their lending market share right now.

Source
eNCA