Does the rot really stop at African Bank? Read the linked Mail and Guardian article for the background to this story.
Given that so many large credit providers were competing head to head with African Bank and given the huge provisions that have been made by the likes of the JD Group, it is highly likely that the rot does not stop with African Bank.
Uncovering the extent of the rot at African Bank and at all other Banks is the work of BOTH the South African Reserve Bank and the National Credit Regulator.
For now, it seems that the statutory responsibilities of the National Credit Regulator, which is responsible for the investigation and regulation of credit providers’ conduct, have taken a back seat to the Reserve Bank investigation.
Both are required by law to take action and ensure that all the rot at African Bank does indeed get exposed, excised and cauterized.
Moreover, it is the job of the National Credit Regulator to ensure that consumers are not left holding the reckless lending bag while shareholders escape the full consequences of this failed business model.