The cost of credit, access to credit and associated market practices 2011


Prior to the introduction of the National Credit Act (NCA) on the 1st June 2007, aggregate credit extended to households rose by 24% per annum between June 2005 and May 2007. Although exchange controls and financial regulation served to insulate SA from the direct effects of the financial turmoil after September 2008, export sales declined dramatically and more than a million jobs were lost.

Prior to the NCA, credit extension data was obtained almost exclusively from the banking sector - through their DI900/BA900 returns to the SA Reserve Bank (SARB). All registered providers are now required to submit returns regularly. SARB data incorporates responses by all monetary institutions. NCR data include returns from all institutions extending credit to the household sector and juristic persons as defined in the NCA.

During the period 1994 to 2010, the value of credit extension to SA’s domestic private sector increased from R230 billion to R2.1 trillion. Mortgage advances were the dominant form (53.7% in 2010) of credit extension to the domestic private sector and during the period, there was a sharp increase in the relative share of mortgage advances, and declines in leasing finance, installment sale credit and other loans and advances.


Evaluation Number:
Report Approval:
Sunday, 31 July 2011
Tuesday, 19 February 2013
Initiated By:
National Credit Regulator
Undertaken By:
Feasibility (Pty) Ltd
Evaluation Period:
November 2010-July 2011
Evaluation Area:
National Outcome:
National Outcome 4: Decent employment through inclusive economic growth.
Commissioned By:
Evaluation Type:
Evaluation Subject:
Geographic Scope:

Evaluation Documents

File Name
96 EQAT 20130319 sr_mb.pdf
2011 08 Access to credit Feasibility report.pdf 96.pdf
EVAL 96 Executive Summary v3 20130322 mb.pdf

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