Johannesburg - South Africa has no plans to allow banks to hold
corporate debt as part of their short-term liquidity requirements, the banking
regulator said on Tuesday.
Unlike some other countries, banks in South Africa are
largely limited to holding government debt to meet liquidity requirements. Some
bankers have said the rules are too stringent and should be relaxed.
However, Errol Kruger, South Africa’s registrar of banks, told Reuters that was not something he was considering.
“We wouldn’t necessarily water that down. Because when you water that down, when you need the liquidity, it wouldn’t be there,” he said in an interview.