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Credit Agency Standard & Poor’s (S&P)  have released their banking outlook report for South Africa for 2013. It is entitled: The South Africa Banking Outlook 2013: Uncertainties At Home, Opportunities Abroad.’

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In the report Standard & Poor’s predict a few things in regard to the banking sector. Of interest are the following:

  • Loan growth will be less than 10%.
  • The majority of loan growth will be from unsecured lending.
  • Later in the year there will be an increase in people not paying their loans.
  • Property loans are expected to be worst hit and consumers will be defaulting on this in higher numbers later in the year.
  • Property values should stay the same or drop as the year progresses

 

In summary, Standard & Poor’s feel that though there will be some growth in the credit market , there will be less loans granted from around mid year 2013 onward. There will be more defaults on existing loans as the year progresses which will put increased pressure on the banks and consumers alike.