Nedbank halts UK trade-related loan business-paper

JOHANNESBURG, June 30 (Reuters) - South African Nedbank (NEDJ.J) has closed its London trade-related loans unit to new business to reduce risk, a newspaper quoted the company as saying on Tuesday.

South Africa's Business Report newspaper, quoting chief executive-designate Mike Brown, said the decision followed a review of operations at the bank as it sought to limit fallout from the global credit crisis.

South African banks kept lending to each other throughout the crisis, avoiding the worst of the liquidity crunch that battered peers in the United States and Europe, but they have been hit by rising bad debts and derivative losses.

Nedbank rival, FirstRand (FSRJ.J), last week said it wanted to exit markets hit hard by the financial crisis and expand instead in emerging markets such as sub-Saharan Africa.

Nedbank, majority-owned by insurance group Old Mutual (OMLJ.J)(OML.L), could not be reached for comment. (Reporting by Rebecca Harrison; Editing by Dan Lalor)