Debtwire CEEMEA in AFK Insider
African Bank: A Story Of Laws And Lending In South Africa
African Bank is primarily known these days for its unceremonious collapse.
The lender rose to prominence by borrowing money in order to provide unsecured loans to a lower-income, riskier clientele — a strategy that worked brilliantly until economic pressures hit the bank’s over-leveraged customer base.
Unlike traditional banks, African Bank wasn’t capitalized through customer deposits, meaning that it struggled to pay back its own debtors and eventually failed.
“Just because you call yourself a bank, doesn’t mean you are a bank,” John Foster, Africa editor of Debtwire, part of The Mergermarket Group, told AFKInsider.
Please see here for the full article online.