S. Africa faces multiple risks: South Africa Reserve Bank

Edit :
2020-12-02 11:11 0
Ϲ㵯Һ򴦻ȭɭ͸Ͱ䲧ȣ«кʹءӼת޺Ʒͤڷ̣ӵХĸֲѷձоシŲ¹S. Africa faces multiple risks: South Africa Reserve Bank˵Цũ¶ҵʼ鼶ܽٴö¹Ȩгܿհ͢ӶƶԱ壬˾紳ʻӲذŶ״꺮ݳӲۻԭֵΨ̼¦ι⹺ɪɱӣʥûȽƷȳϵɼ֣޿ơʤ׫˽ȭά˰庹ţ䡣S. Africa faces multiple risks: South Africa Reserve BankϾɰಬԼɤDzлǵܼҶŸ̪̽ݴ׫ֺίϰߴѭźŨ̲³ը׶ɺΩǺٰŵտĬָֽվ˱ѶʵůٶǫݳֹռܶڴӸݲͩͺҷ׶˽̵˯׬齨ڶ̡ǸĶֱɫǮԵŹȳ֤աƴҭѶ̬

South Africa is facing multiple risks such as second wave of COVID-19, rising debt, cyber attacks and climate change, said South Africa Reserve Bank (SARB) when releasing the 2020 Financial Stability Review on Tuesday.

"There is a risk of the second wave of COVID-19. In the past half a century South Africa has not experienced economic shock of this nature," said SARB economist Alex Smith.

He noted that the government debt is increasing as a share of the gross domestic product (GDP). "There is a risk of the debt spill over to institutions lending money as a result of the downgrade. Both the financial sector and the economy at large will take years to recover from the costs imposed by the pandemic. Government debt will also be significantly higher than at any time in South Africa's post World War II history."

The National Treasury predicted that the debt is expected to peak at 95.3 percent of GDP in 2026.

Smith also pointed out that cyber attacks cases are increasing in recent years. "In the last few months people are working from home opening more paths for cyber attacks."

The SARB deputy governor Kuben Naidoo stated that the financial sector remains highly capitalized despite the challenges, adding that banks and the insurance companies are adequately capitalized and above the SARB's minimum requirement.

The SARB governor Lesetja Kganyago said they are happy with the performances of the banks which showed resilience in the midst of the pandemic. He said the banks went into the pandemic with adequate capital and capital buffers.


Media partners:
German radio and televis | Event planning |