Moneyweb reports that Standard Bank has said that 2009 appears to be tougher than expected , with bad debts increasing , volumes significantly lower and fraudulent activity on the increase.

According to Sim Tshabala Deputy CEO , they expect bad debts to continue increasing throughout 2009 with stability coming to the market during 2009. Standard Bank still expected earnings for 2009 to be solid with no nasty surprises for investors or depositors , unlike some of the bigger international banks.

Nevertheless South African banks have all been hurt by rising bad debts as well as lower consumer confidence , unemployment is a serious concern in certain sectors. Consumers are spending less and borrowing less all of which are bad for banks who generate fees when you swipe your credit and debit cards and make money through lending.

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