African Bank (Abil) began its life as a small commercial bank in South Africa in the 1970s before transforming itself into a stalwart in the 1990s by handing out high-interest loans to some of South Africa’s poorest sectors. Yet, as with so many institutions, problems surfaced when the financial crisis hit. Fresh cash fuelled Abil’s modus operandi after the South Africa Reserve Bank, like many other central banks, printed money to stimulate the economy.
In May 2013, the bank’s share price collapsed after an announcement that a third of its unsecured loan book was non-performing.
Thanks for your interest in Euromoney!
To unlock this article:
