June 1997 - Article - Bank credit to the private sector
S.J. van der Walt
Last Modified Date:
2020-10-01, 09:31 PM
Quarterly Bulletins > Articles and Notes
Bank credit is an important source of finance to the private sector in South Africa. Over the past twenty years bank lending to the private sector increased at a relatively high average annual rate, even though the development of sophisticated financial products and highly efficient financial markets seemed to favour borrowing from alternative non-bank sources of finance.This note gives a short overview of changes in bank credit extension to the private sector during the period 1976 to 1996. A distinction is drawn between the different types of credit and between lending to companies and individuals. Finally, the banks' lending portfolio is disaggregated according to various sectors of economic activity.