SARB Release November 2023 Financial Stability Report

Highlights from the SARB's November 2023 Financial Stability Report:

• The 2023 CSST (common scenario stress test) simulates a South African economy that remains vulnerable to spillover effects from global events and is confronted by a rapidly escalating electricity crisis, persistent inflation and weak economic growth prospects.
• Concerns over the growing debt-service costs and the large stock of government debt have elevated government’s borrowing costs... As government debt has increased, so has the domestic financial sector’s exposure to it. This could lead to a negative feedback loop between the sovereign and the financial sector.
• The banking sector’s capital adequacy ratio (CAR) and liquidity coverage ratio (LCR) remain above the prudential minimum requirements, strengthening its overall resilience to shocks.

Click here to see the full report.