Viceroy's Perring Says Capitec Loan Book Is 'Looking in Very Bad Health'

Viceroy's Perring Says Capitec Loan Book Is 'Looking in Very Bad Health'

Assessment

Interactive Video

Business

University

Hard

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The transcript discusses a report on Capitec's performance, highlighting concerns about its loan practices and financial health. The report compares Capitec to its competitors, noting its strong retail deposits but raising issues about alleged reckless lending and fee charges. Capitec's CFO denies these allegations, emphasizing transparency in their operations. The discussion also touches on the ethical considerations of short selling and the potential regulatory and economic impacts of Capitec's practices.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was a significant concern raised in the report about Capitec's performance?

Capitec's high customer satisfaction rates

Capitec's outperforming international banks

Capitec's low interest rates

Capitec's limited market presence

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the allegations made against Capitec regarding its loan practices?

Charging fees on rescheduled loans

Offering loans with no interest

Providing loans only to high-income individuals

Refusing to reschedule loans

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why did the report's authors choose to speak with former employees and borrowers?

To confirm Capitec's marketing claims

To understand Capitec's future strategies

To gather current insider information

To avoid trading on material, nonpublic information

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What potential impact does Capitec's practices have on the South African economy?

Improved international relations

Higher employment rates

Material impact on economic stability

Increased foreign investment

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does Capitec respond to the allegations made in the report?

By denying the allegations and claiming a lack of understanding

By admitting to charging fees on rescheduled loans

By agreeing to change their loan practices

By ignoring the report completely

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What ethical consideration is highlighted in the report regarding short selling?

Short selling is illegal in South Africa

Short sellers should always contact the company first

Short sellers must avoid defamatory statements

Short sellers should only use current employees as sources

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What long-term position have the report's authors taken regarding Capitec?

They anticipate a significant fall in Capitec's equity price

They have no position on Capitec

They plan to invest more in Capitec

They expect Capitec's equity price to rise