Monitor non-bank lenders - Sarb

Pretoria - The South African Reserve Bank (Sarb) said on Tuesday closer monitoring of non-banking financial intermediaries was necessary to reflect the liquidity and credit risk they pose to the financial system.   

"Nearly all the services that banks provide can also be provided by shadow banks, with the main exception being, specifically in the case of South Africa, taking deposits from the public," Sarb said in its Financial Stability Review.

"The supervision of these entities needs to be adapted to reflect liquidity risk and credit risk, and to avoid unintended regulatory arbitrage."