The bank has tightened its lending criteria, which are now three times stricter than regulatory guidelines because of an 80% increase in impairments. Despite the stricter criteria, Capitec experienced a 20% growth in loans and advances, with new loans accounting for 5.3% of the bank’s gross loan book. The bank has implemented numerous changes to its affordability assessment and credit granting criteria, resulting in a lower loan approval rate of 45%. Additionally, Capitec has reduced credit limits and discontinued its short-term access facility.
