Search:  
Western Cape Business News
1075
VIEWS

Send  Share  RSS  Twitter  19 Nov 2009

ECONOMY: Slowdown In Consumer Credit Continues

 



Recent Western Cape Business News

The total value of new credit granted declined from R51, 87 billion in the quarter ended March 2009 to R50.93 billion for the quarter ended June 2009, a decrease of 1.83% compared to the previous quarter and a decline of 40.52% compared to the previous year.  This indicates that after a period of ongoing decline in the volume of credit granted, credit volumes may have stabilized. The extent of the decline is much less than in previous quarters, according to the NCR.

The following were some of the most significant trends compared to previous quarters:

·         Mortgages granted showed the biggest decline, from R42.69 billion in June 2008 to R17.66 billion in June 2009, a year–on–year reduction of 58.63%.

·         Secured credit which mostly consists of vehicle finance declined from R25.78 billion in June 2008 to R18.78 billion in June 2009, a reduction of 27.16%.

·         Individuals who earn gross monthly income of more than R15, 000 per month received on average 80% of the number of   mortgages granted over the period June 2008 to June 2009.

As at June 2009, the total outstanding (or gross debtors’ book) for consumer credit was R1.14 trillion. The breakdown was as follows: Mortgages accounted for R732.13 billion (64.03%); “Secured credit agreements” was R220.40 billion (19.28%); credit facilities were R140.18 billion (12.26%); unsecured credit was R50.13 billion (4.38%); and short-term credit was R594.50 million (0.05%).

The banks’ share of the total outstanding consumer credit as at June 2009 was R1, 02 trillion (89.58%) with the retailers at R38,29 billion (3.35%), non-bank vehicle financiers at R37,01 billion (3.24%) and “Other credit providers” at R43,81 billion (3.83%). Other credit providers consist primarily of pension backed lenders, insurers, non-bank mortgage lenders and securitized debt.



 
 
 
infacet-jewellersBusiness Profilesback-care-solutions-cape-townorganic-products-weatern-capemetropolitan-golf-club
 
   
 
 
 
  Accomodation
Accommodation


Online Foreign Exchange
Foreign Exchange


Directory
Directory


Fax
Fax 2 Email


Finance
Finance


Furniture
Furniture


Casino
Online Casino


Restaurant
Restaurant


Auctions
Shop Online


Study IT
Study IT Online


Web design
Web Design


Weddings
Weddings


Work
Work from Home
 
 
 
 
 
Company News
 
 

 

© 2019 www.wcbn.co.za. All rights reserved.

Daily Newsletter Subscription

 

Subscribe to the Western Cape Business News Daily News and information email (it's free).

Thank You
Your email address has been added.

Name:
Email Address: