In similar fashion, fears that some participants in financial transactions may prove to be “rotten apples” would force all others to pay a higher price for access to resources, even if the broad majority behave in a proper manner.
In a developing country like South Africa, reluctance to lend, or demand for an elevated risk premium, for fear of fraudulent or information-withholding behaviour, can easily limit the ability of the general public to access credit and, in turn, impede the path to a more balanced and inclusive economic growth framework.