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The outlooks on all rated South African banks remain negative at the start of 2017, continuing to reflect the combined pressures of weak economic growth and the persistent credit risk of over-leveraged households.
The Consumer Credit Index (CCI) declined marginally in Q4 2016 to 49.6 from 50.3 according to TransUnion (NYSE: TRU), a global leader in credit and information management. The CCI is based on a 100-point scale, comprising three components: consumer credit behaviour (borrowing and repayment), household cash flow conditions and debt servicing costs. A level of 50.0 is the break-even level of improving and deteriorating credit health.
According to Coface’s estimates, global growth weakened for the second consecutive year in 2016, at 2.5%. Marginally higher growth of +2.7% is expected in 2017, especially with the upturn in activity in emerging economies (+4.1% in 2017, up from +3.7% in 2016) and the economic recovery in Brazil and Russia which will offset China’s gradual economic deceleration.
On 17th January 2017, Theresa May, the British Prime Minister (PM) who is expected to trigger article 50 of the Treaty on European Union1 (EU) by the end of March, outlined her blueprint for the UK’s exit from the EU.
Do you think short-term insurance broking will survive the AI plus humanoid robotics age?