Browsing: FNB

The Reserve Bank of South Africa.
  • South Africa's major banks have increased their provisions for bad debt, signaling the challenging effects of higher interest rates on consumers and the start of a terrible phase of the credit cycle.
  • The repo rate has risen by a cumulative 425 basis points, making it more expensive for consumers to finance their debt, particularly those with long-term loans such as mortgages and vehicle loans.
  • This ongoing burden of debt is a significant source of stress for families, with 51 percent of South African parents experiencing financial strain affecting their family life.

South Africa's major banks increased their provisions for bad debt, underscoring the challenging effects of higher interest rates on consumers and the start of a more difficult phase of the credit cycle.

Despite the banks' profitable lending activities and the impact of higher interest rates, consumers have been struggling to cope with the cumulative repo rate hikes since November…