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South Africa - Financial Sector Assessment

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dc.contributor.authorWorld Bank
dc.date.accessioned2022-03-04T15:25:13Z
dc.date.available2022-03-04T15:25:13Z
dc.date.issued2022-01-01
dc.description.abstractThe 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.identifierhttp://documents.worldbank.org/curated/en/102601645128957641/South-Africa-Financial-Sector-Assessment
dc.identifier.doi10.1596/37079
dc.identifier.urihttps://hdl.handle.net/10986/37079
dc.languageEnglish
dc.publisherWashington, DC: World Bank
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectCOVID-19
dc.subjectCORONAVIRUS
dc.subjectPANDEMIC
dc.subjectECONOMIC RECOVERY
dc.subjectINSURANCE
dc.titleSouth Africa - Financial Sector Assessmenten
dspace.entity.typePublication
okr.crossref.titleSouth Africa - Financial Sector Assessment
okr.date.disclosure2022-02-17
okr.date.doiregistration2025-05-07T09:01:23.605132Z
okr.doctypeFinancial Sector Assessment Program (FSAP)
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/102601645128957641/South-Africa-Financial-Sector-Assessment
okr.guid102601645128957641
okr.identifier.externaldocumentum090224b088cebba1_1_0
okr.identifier.internaldocumentum33735258
okr.identifier.report168827
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/102601645128957641/pdf/South-Africa-Financial-Sector-Assessment.pdfen
okr.region.administrativeAfrica
okr.region.administrativeAfrica Eastern and Southern (AFE)
okr.region.countrySouth Africa
okr.topicEconomic Growth
okr.topicAdaptation to Climate Change
okr.topicFinancial Sector Policy
okr.topicMacroeconomics and Economic Growth
okr.topicEnvironment
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