Working papers

WP/2021/11 – South African bank lending practices survey

The South African Bank Lending Practices Survey is based on the third quarter of 2021, from July to September. It is a combination of a survey and interviews with certain senior bank lending executives from the contributing banks and forms the basis of this working paper.

As at the end of September 2021, the total domestic assets held by the South African banking industry was approximately R5 643 billion. This was about R121 billion higher than the total balance sheet of the banks in our previous survey, using March 2021 data, at approximately R5 521 billion.

In the previous Survey, banks indicated a general preference towards household lending over lending to enterprises, indicating a significant increase in mortgages to households during the next period. Household mortgage finance at R38 billion was the largest contributor to the R44 billion in loans extended to households, with enterprises receiving R29 billion in total.

Since our March 2021 Survey, we experienced rioting and looting in KwaZulu Natal and other provinces during July. The subsequent month-on-month data does not show a noticeable change in bank lending as a result thereof.

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WP/2021/10 – South African bank lending practices survey

The South African Bank Lending Practices Survey, measures credit sentiment across the banking industry and continues with its three themes of household lending, enterprise lending and the strategic direction of banks. This survey is based on the first quarter of 2021, from January to March and a combination of a survey and interviews with certain senior bank lending executives from the contributing banks forms the basis of this working paper.

As at the end of March 2021, the total domestic assets of the South African banking industry were approximately R5 521 billion. This was about R25 billion lower than the total balance sheet of the banks in our previous Survey, at approximately R5 546 billion. The Survey in March 2020 recorded an extraordinary month-on-month increase of R258 billion. Month-on-month growth in total industry balance sheets since then have been negative for 6 out of the 12 months until March 2021. In March 2021, the month-on-month growth of the total assets of the banking industry decreased by the largest single amount of R65 billion since the inception of the Survey in September 2017. Although significant variations were experienced during the past year, the total balance sheet growth was still positive from pre-Covid levels to date. The total bank balance sheet pre-Covid was approaching R5.3 trillion and has been sustained at levels over R5.5 trillion for the past year.

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WP/2020/09 – South African bank lending practices survey

The South African Bank Lending Practices Survey, measures lending sentiment of senior credit practitioners across the banking industry and continues with its three themes of household lending, enterprise lending and the strategic direction of banks. This survey also includes questions relating to the impact of COVID-19 and resulting lockdown regulations as well questions related to renewable energy.

As at the end of September 2020, the total domestic assets of the South African banking industry were approximately R5 546 billion. This was about R11 billion lower than the total balance sheet of the banks in March 2020 at R5 558 billion, reflecting the unprecedented growth in month-on-month lending for March 2020 of R258 billion. The most significant contribution was in derivative instruments where collectively R154 billion was added to the assets of the banking industry balance sheet.

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WP/2020/08 – South African bank lending practices survey

The South African Bank Lending Practices Survey, measures lending sentiment of senior credit practitioners across the banking industry and continues with its three themes of household lending, enterprise lending and the strategic direction of banks. 

During the six months to March 2020, new domestic lending of approximately R330 billion had been created, almost R100 billion more than the previous period ending September 2019. The banks indicated a shift away from household lending in favour of enterprise lending in the previous survey and the current data confirms the shift in strategic direction, with banks’ lending 15% (R49 billion) to households and 21% (R69 billion) to enterprises with a further 0.1% (R289 million) to SMEs.

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WP/2019/07 – South African bank lending practices survey

The South African Bank Lending Practices Survey, measures lending sentiment of senior credit practitioners across the banking industry and continues with its three themes of household lending, enterprise lending and the strategic direction of banks. 

Local South African bank assets grew by approximately R229 billion since the previous surveyIn line with their strategic direction, provided in the previous survey, banks allocated more of this funding towards households than enterprises. This trend is set to change as banks indicated that their preference going forward would be to move away from household lending towards enterprise lending. Enterprises seeking property finance and debtor finance could be expected to benefit most from this shiftBanks also indicated that the construction sector, although having recovered, had the most stringent credit stance, with mining and quarrying moving into negative territory from the previous survey.

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WP/2019/06 – South African bank lending practices survey

The latest release of the South African Bank Lending Practices Survey, which measures credit lending sentiment of senior credit practitioners across the industry, can now be linked to measurable outcomes.

Of the estimated R205 billion growth in net new bank lending since the last survey, banks preference towards household credit was evident to the detriment of business enterprises, where credit was constricted further. Indexing the credit stance of banks from the first survey in 2017, the credit stance towards household lending remains positive and trending up, while sentiment towards business enterprises, remains negative and trending down.


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WP/2018/05 – South African bank lending practices survey

The latest release of the South African Bank Lending Practices Survey, which measures lending sentiment of senior credit practitioners across the industry, continues to remain positive following the change in political leadership and the increased focus on governance. 

Although land expropriation remains a significant impediment to certain categories of lending, the proposed debt intervention bill, in its current form, has dramatically impacted on the willingness of banks to lend. Sentiment towards lending to the mass market was forecast to turn negative in the run up to the Christmas shopping season, making access to credit significantly more difficult. 


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WP/2018/04 – Understanding the World Economic Forum Global Competitiveness Report

The World Economic Forum (WEF) Global Competitiveness Report (GCR) is an annual report designed to assess competitiveness pillars of economies around the world, with the aim of influencing policy decisions and economic development strategy for those countries.

The GCR Financial System Pillar includes a measure of the banking industry. The South African banking industry, measured by the category “Soundness of banks”, had enjoyed a top ten ranking since 2009/2010, however, the GCR for 2017/2018 moved our ranking from number 2 to 37 and for 2018 from 37 to 62, a dramatic weakening of one of South Africa’s strongest performers.

The decline challenged official banking measures and the Centre of Excellence in Financial Services (COEFS) began researching the possible contributing factors to this significant drop in ranking. COEFS engaged the WEF team, and the partnering institutions for South Africa, to investigate the reason behind this noticeable change.


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WP/2018/03 – South African bank lending practices survey

The second South African Bank Lending Practices Survey (BLPS), completed by senior decision makers in banks, has been completed. The survey continues to provide insight into the sentiment of bankers in South Africa and remians designed to provide an indication of the banks’ reactions and intentions in the provision of credit. The survey follows the approach of similar international quarterly surveys  done in Canada, America, Europe and Britain, but has been adapted to apply to the South African market. This is the second BLPS which should over time, provide a useful measure to the credit industry and assist with understanding the importance of sentiment in the credit landscape.


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WP/2018/02 – South African bank lending practices survey

Coefs has developed a bank lending practices survey (BLPS) which was completed by senior credit decision makers in banks. The survey was designed to provide an indication of the banks’ reactions and intentions in the provision of credit. The survey follows the approach of similar international quarterly surveys  done in Canada, America, Europe and Britain, but has been adapted to apply to the South African market. The BLPS identifies various forms of lending and gauges the impact on credit policy and new lending, based on current and future economic conditions, legislative and regulatory changes.


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WP/2017/01 – In pursuit of efficient financial markets for the SADC region

Through discussions with practitioners from South African banks, a number of challenges were identified linked to the growth of vibrant financial markets within individuals countries in the African continent, which in turn frustrate the development of a vibrant financial market across the region. One of the key challenges we identified was the lack of common legal documentation to underpin standard economic transactions.

WP/2019/06 – South African bank lending practices survey

The latest release of the South African Bank Lending Practices Survey, which measures credit lending sentiment of senior credit practitioners across the industry, can now be linked to measurable outcomes.

Of the estimated R205 billion growth in net new bank lending since the last survey, banks preference towards household credit was evident to the detriment of business enterprises, where credit was constricted further. Indexing the credit stance of banks from the first survey in 2017, the credit stance towards household lending remains positive and trending up, while sentiment towards business enterprises, remains negative and trending down.


View working paper

WP/2018/05 – South African bank lending practices survey

The latest release of the South African Bank Lending Practices Survey, which measures lending sentiment of senior credit practitioners across the industry, continues to remain positive following the change in political leadership and the increased focus on governance. 

Although land expropriation remains a significant impediment to certain categories of lending, the proposed debt intervention bill, in its current form, has dramatically impacted on the willingness of banks to lend. Sentiment towards lending to the mass market was forecast to turn negative in the run up to the Christmas shopping season, making access to credit significantly more difficult. 


View working paper

WP/2018/04 – Understanding the World Economic Forum Global Competitiveness Report

The World Economic Forum (WEF) Global Competitiveness Report (GCR) is an annual report designed to assess competitiveness pillars of economies around the world, with the aim of influencing policy decisions and economic development strategy for those countries.

The GCR Financial System Pillar includes a measure of the banking industry. The South African banking industry, measured by the category “Soundness of banks”, had enjoyed a top ten ranking since 2009/2010, however, the GCR for 2017/2018 moved our ranking from number 2 to 37 and for 2018 from 37 to 62, a dramatic weakening of one of South Africa’s strongest performers.

The decline challenged official banking measures and the Centre of Excellence in Financial Services (COEFS) began researching the possible contributing factors to this significant drop in ranking. COEFS engaged the WEF team, and the partnering institutions for South Africa, to investigate the reason behind this noticeable change.


View working paper

WP/2018/03 – South African bank lending practices survey

The second South African Bank Lending Practices Survey (BLPS), completed by senior decision makers in banks, has been completed. The survey continues to provide insight into the sentiment of bankers in South Africa and remians designed to provide an indication of the banks’ reactions and intentions in the provision of credit. The survey follows the approach of similar international quarterly surveys  done in Canada, America, Europe and Britain, but has been adapted to apply to the South African market. This is the second BLPS which should over time, provide a useful measure to the credit industry and assist with understanding the importance of sentiment in the credit landscape.


View working paper

WP/2018/02 – South African bank lending practices survey

Coefs has developed a bank lending practices survey (BLPS) which was completed by senior credit decision makers in banks. The survey was designed to provide an indication of the banks’ reactions and intentions in the provision of credit. The survey follows the approach of similar international quarterly surveys  done in Canada, America, Europe and Britain, but has been adapted to apply to the South African market. The BLPS identifies various forms of lending and gauges the impact on credit policy and new lending, based on current and future economic conditions, legislative and regulatory changes.


View working paper

WP/2017/01 – In pursuit of efficient financial markets for the SADC region

Through discussions with practitioners from South African banks, a number of challenges were identified linked to the growth of vibrant financial markets within individuals countries in the African continent, which in turn frustrate the development of a vibrant financial market across the region. One of the key challenges we identified was the lack of common legal documentation to underpin standard economic transactions.

WP/2019/06 – South African bank lending practices survey

The latest release of the South African Bank Lending Practices Survey, which measures credit lending sentiment of senior credit practitioners across the industry, can now be linked to measurable outcomes.

Of the estimated R205 billion growth in net new bank lending since the last survey, banks preference towards household credit was evident to the detriment of business enterprises, where credit was constricted further. Indexing the credit stance of banks from the first survey in 2017, the credit stance towards household lending remains positive and trending up, while sentiment towards business enterprises, remains negative and trending down.


View working paper

WP/2019/06 – South African bank lending practices survey

The latest release of the South African Bank Lending Practices Survey, which measures credit lending sentiment of senior credit practitioners across the industry, can now be linked to measurable outcomes.

Of the estimated R205 billion growth in net new bank lending since the last survey, banks preference towards household credit was evident to the detriment of business enterprises, where credit was constricted further. Indexing the credit stance of banks from the first survey in 2017, the credit stance towards household lending remains positive and trending up, while sentiment towards business enterprises, remains negative and trending down.


View working paper