Moreover, increasing lending will enhance the profit base of financial institutions themselves in the medium to long term and thus is consistent with what they should be aiming for. In fact, partly because they have shown steady achievements in their business matching activities, the outstanding amount of financial institutions’ loans has recently been increasing at a moderate pace.
Yet others chose to consolidate and form large groups. This approach led to takeovers and amalgamations of financial activity in new companies that provide a broad spectrum of financial services to consumers. In South Africa the financial system has also been undergoing major modernisation and strengthening.