Reserve Bank weighs sale of its 50% stake in African Bank
The SA Reserve Bank wants to sell its stake in African Bank in a year or two, moving a step closer to bringing the lender back into private ownership after being rescued from collapse under a wave of unpaid consumer loans.
African Bank nearly collapsed in 2014 after its mainstay low-income clients struggled to pay back personal loans amid a slowing economy and job losses, prompting the Bank to step in with a bailout package. As part of the bailout plan, the central bank injected R7bn into African Bank in exchange for the lender’s bad loan portfolio and a 50% stake.
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