This is Moodys warning to the Banks and to all in South Africa:The ratings agency said the review for downgrade reflected its concerns regarding weaker economic growth, particularly in the context of consumer affordability pressure and still high consumer indebtedness, which would probably lead to higher credit costs for the banks. Noting the broad resilience of South African banks in the past, it said it was still concerned about potential asset quality pressure building up in the retail, small, medium and micro enterprises, and the corporate loans segments on the banks’ portfolios. “To this end, the review will focus on a forward-looking assessment of banks’ capital, funding and liquidity buffers against risks stemming from the increasingly challenging operating conditions.” Profound reasons to accelerate the NDP and to invest in SME development to increase the economic cake which will deliver more customers that have capacity to buy AND save.
Posted on: Wed, 20 Aug 2014 09:18:30 +0000
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