Publication:
South Africa - Financial Sector Assessment

dc.contributor.author World Bank
dc.date.accessioned 2022-03-04T15:25:13Z
dc.date.available 2022-03-04T15:25:13Z
dc.date.issued 2022-01-01
dc.description.abstract The South African financial system has weathered the shock of COVID-19 but faces growing risks emanating from a weak macroeconomic outlook. The pandemic crisis hit South Africa hard, with nonresident capital outflows accelerating and the domestic and global slowdown precipitating a6.4 percent GDP contraction in 2020. A brief period of liquidity stress was managed with new central bank facilities and a lowering of liquidity requirements; and banks proved resilient thanks to sound capital and liquidity buffers. Asset management and pension assets saw falling valuations, but redemption pressures quickly dissipated as markets stabilized. The intensification of the sovereign financial system nexus emerging from the crisis poses risks going forward, and a resurgence of the pandemic could deteriorate asset quality. Banks are resilient in the FSAP’s baseline; however, amedium-term adverse stress scenario would cause a significant decline in capital although most banks would remain sufficiently capitalized. Under stress, banks could face some liquidity gaps, particularly at very short maturities, highlighting the importance of continued close monitoring. The impact of COVID-19 on insurers has thus far been contained, but prudential rules should be strengthened to ensure the measure of capital is sufficiently robust. en
dc.identifier http://documents.worldbank.org/curated/en/102601645128957641/South-Africa-Financial-Sector-Assessment
dc.identifier.uri http://hdl.handle.net/10986/37079
dc.language English
dc.publisher Washington, DC: World Bank
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo
dc.subject COVID-19
dc.subject CORONAVIRUS
dc.subject PANDEMIC
dc.subject ECONOMIC RECOVERY
dc.subject INSURANCE
dc.title South Africa - Financial Sector Assessment en
dspace.entity.type Publication
okr.date.disclosure 2022-02-17
okr.doctype Financial Sector Assessment Program (FSAP)
okr.doctype Economic & Sector Work
okr.docurl http://documents.worldbank.org/curated/en/102601645128957641/South-Africa-Financial-Sector-Assessment
okr.guid 102601645128957641
okr.identifier.externaldocumentum 090224b088cebba1_1_0
okr.identifier.internaldocumentum 33735258
okr.identifier.report 168827
okr.imported true en
okr.language.supported en
okr.pdfurl http://documents.worldbank.org/curated/en/102601645128957641/pdf/South-Africa-Financial-Sector-Assessment.pdf en
okr.region.administrative Africa
okr.region.administrative Africa Eastern and Southern (AFE)
okr.region.country South Africa
okr.topic Economic Growth
okr.topic Adaptation to Climate Change
okr.topic Financial Sector Policy
okr.topic Macroeconomics and Economic Growth
okr.topic Environment
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