Loans | FirstRand CEO Nxasana Focusing On Unsecured Loans As Companies Hoard Cash
January 27, 2012 – 7:57 am
FirstRand Ltd. Chief ExecutiveOfficer Sizwe Nxasana (FSR) said South Africa ‘s second-largest bank isfocusing on unsecured loans to consumers as cash-hoardingcompanies have limited borrowing needs.
“South African loans are focused on unsecured lending,”Nxasana said in a Bloomberg Television interview at the WorldEconomic Forum in Davos, Switzerland today. South Africancompanies are sitting on “a lot of cash,” he said.
Local lenders including Standard Bank Group Ltd. (SBK) , Africa’slargest bank, and Barclays Plc (BARC) ‘s Absa Group Ltd. (ASA) are stepping uploans to South Africans without demanding collateral. The banksare aiming to capture more low-income customers as consumers arehurt by higher inflation and falling house prices.
Unsecured lending has “huge” growth potential, RiaanStassen, CEO of Capitec Bank Holdings Ltd. (CPI) , which began businessin 2001 specializing in loans for low-income earners, said in aninterview yesterday.
To contact the reporter on this story:Renee Bonorchis in Johannesburg at rbonorchis@bloomberg.net
To contact the editor responsible for this story:Edward Evans at eevans3@bloomberg.net
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