Thesis (MDF)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: South Africa has experienced a significant growth in household unsecured credit extension, igniting
concerns around the potential negative impact of household indebtedness on the stability of the
banking system. With the use of correlation and ordinary least squares, the study attempts to prove
a relationship between growth in unsecured lending (dependent variable) and consumption,
lending rates and de-regulation (independent variables). Although there is a correlation between
growth in unsecured lending and interest rates, this was not statistically significant. The study also
found a strong relationship between unsecured lending and the other independent variables.
Due to income and wealth inequality exacerbated by the past political dispensations as well as
continued rise in the cost of living, unsecured lending provides a source of supplementary income
that allow households to smooth their consumption expenditure over their life-cycle. On a longerterm
basis, the country needs to gear itself to focus primarily on channelling resources towards
productive investments. Quality education and skills as well as a culture of entrepreneurship and
wealth creation should be cultivated at a young age.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/97470 |
| Date | 04 1900 |
| Creators | Motau, Hlokammoni Grathel |
| Contributors | Linke, Arthur, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | ix, 79 pages |
| Rights | Stellenbosch University |
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