Analysis of credit expansion in South Africa

Developments in South Africa over the past few years clearly testify to the strong relationships between economic growth and credit expansion. The paper analyses the factors driving credit growth in South Africa. It shows the strong income effect on the credit level in South Africa while the changes in interest rates do negatively affect home loans but have less effect on other components of bank credit to the private sector. This paper concludes that the interest rates policy must be combined with other tools of monetary and financial policy to guarantee a structurally lower level of credit to the private sector.

Grantor dc:publisher.institution

Department of Finance and Tax

Year dc:date.issued

2008

Author dc:creator

• Mbayi, Willy Bashiya

Advisor dc:contributor.advisor

• Holman, Glen

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/11427/10675

OAI identifier oai:identifier

oai:open.uct.ac.za:11427/10675