African Bank, South Africa’s largest provider of unsecured loans, has posted a loss for the fiscal year through September.
When banks offer bad debtors more credit, they put lives at risk, not just their own bottom line.
The NCR has reached a settlement agreement with African Bank relating to two cases in which the bank was accused of reckless lending.
Old Mutual has halted bond purchases from unsecured lenders, while Futuregrowth Asset Management will "wind down' holdings of bonds with the lenders.
Unsecured lender African Bank's outlook rating has been downgraded from stable to negative by Moody's Investors Service.
It is not clear how the penalty was calculated and its timing has raised eyebrows.
High levels of credit may have contributed to the cocktail of factors that led to the bloody clashes between police and Lonmin strikers.
South African stocks were slightly higher at noon on Monday with MTN in the spotlight on fresh merger talks with another Indian firm, but overall the session was muted due to public holidays in the United States and the United Kingdom. At 11.59am, the all-share index was up 0,30%, thanks to a 1,03% rise in resources.