Share

Sarb stays on financial stability risk watch

Cape Town - The SA Reserve Bank said it is continuously assessing adverse events that could pose a financial stability risk including a ratings downgrade.

In response to a question in parliament by DA shadow minister of finance David Maynier on whether the Sarb has taken steps to mitigate the effects of a possible sovereign ratings downgrade, the Bank said it is involved in continuous efforts to identify, quantify and mitigate possible adverse events that could pose a financial stability risk.

This contingency planning involves engaging with key public and private sector stakeholders, the Bank said.

The dual mandates of the Sarb are price and financial stability.

Since 2014 the risks associated with a sovereign credit rating downgrade to sub-investment grade have been included in the Sarb Financial Stability Department's risk assessment matrix.

The SARB said the scenarios and methodology of its 2016 banks stress testing exercise also make provision for vulnerabilities similar to what could be experienced following a downgrade.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.3%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.38
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders