South Africa
Banks raise alarm over land expropriation─── 07:26 Fri, 26 Mar 2021
Land expropriation without compensation could pose a significant risk to the banking sector.
That’s the warning from the Banking Association of South Africa.
The association has told Parliament that market uncertainty around land rights has led to a marked decrease in the value of land-based property.
It says there's a reduced appetite from property buyers, which could destabilise the banking sector.
Banks have a R1.6-trillion exposure to land-based property in the form of mortgages.
The association says if a property that a bank has taken security over is expropriated, it could have a crippling effect on the borrower and the bank.
