Sarb stays on financial stability risk watch | Fin24
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Sarb stays on financial stability risk watch

Aug 21 2016 15:33

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.

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sarb  |  ratings downgrade  |  sa economy


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