South African Reserve Bank News

Agency banking's potential impact on South African financial inclusion

This paper investigates the role of agency banking in enhancing financial inclusion in South Africa.

New model analyzes liquidity and credit risks in South African bonds

This paper presents a new dynamic term structure model that addresses both liquidity and credit risk premia in bond prices.

South Africa's net international investment position decreases in Q3 2024

South Africa's net international investment position (IIP) saw a decline in the third quarter of 2024.

South African authorities launch review of funeral insurance distribution framework

The Financial Sector Conduct Authority (FSCA) and Prudential Authority (PA) have announced a review of the regulatory framework governing the distribution of funeral insurance in South Africa.

Consultation on ZARONIA-based non-linear derivative instruments launched

The Market Practitioners Group (MPG) Derivatives Workstream has released a white paper suggesting market conventions for non-linear derivative products.

JIBAR transition: South Africa urged to adopt ISDA fallback methodology

The Credit Adjustment Spread Sub-workstream, a part of the Transition Planning and Coordination Workstream (TPCW) of the MPG, has been working on determining suitable credit adjustment spreads for Jibar tenors.

Market Practitioners Group suggests phased transition to ZARONIA in derivatives

The Market Practitioners Group (MPG) Derivatives Workstream has issued recommendations for a "ZARONIA-First" initiative in the derivatives market.

International insurance supervisors to meet in Cape Town for annual conference

The Prudential Authority, part of the South African Reserve Bank, and the Financial Sector Conduct Authority are set to host the 2024 International Association of Insurance Supervisors Annual Conference.

Paper discusses regulation for crypto-asset separation in transaction banking

The recent paper on digital assets in payments and transaction banking defines these assets as those controlled through public-private key cryptography.

Study explores South Africa's bank lending and deposits channels amid monetary policy shifts

This paper examines the bank lending channel of monetary policy transmission in South Africa, despite the absence of typical bank loan-level data.

Study examines impact of child grants on adult employment

A study conducted on a South African social grant program has explored the long-term effects of cash transfers on labor market outcomes.

Basel III impacts non-bank institutions and fintech growth in South Africa

We examine the effects of the implementation of the Basel III accord on the growth of non-bank financial institutions and fintech platforms in South Africa.

Study analyzes impact of regulation on South African bank lending

The balance between financial inclusion and macroprudential policy in South Africa is the focus of a recent study. The research examines how these regulations impact bank lending rates and volumes among the country's largest banks. Financial inclusion aims to extend affordable credit, which could affect the stability of the financial sector. In contrast, macroprudential policy seeks to mitigate financial risks.

Pilot study links BER inflation data with spatial tax panel dataset

The Bureau for Economic Research (BER) has been collecting inflation expectations survey data in South Africa since 2000, following the adoption of inflation targeting by the South African Reserve Bank. This survey has provided significant insights for policy-making, academic research, and private sector analysis. However, recent international trends emphasizing microdata in macroeconomics have prompted a reevaluation of the survey's demands and opportunities.

Basel III affects South African firms' financing choices

This study investigates the effects of the Basel III regulatory framework on financing decisions within South Africa's real sector. The research utilizes a sample of 2,045 firm-year observations from 2011 to 2015 and applies the difference-in-differences approach.

South African Reserve Bank sanctions HSBC for non-compliance

The South African Reserve Bank (SARB) has taken action against HSBC Bank Plc's Johannesburg Branch due to non-compliance with the Financial Intelligence Centre Act 38 of 2001. This decision follows an inspection conducted in 2021.

South African Reserve Bank imposes sanctions on Bidvest Bank

The South African Reserve Bank (SARB) has taken action against Bidvest Bank Limited due to non-compliance with the Financial Intelligence Centre Act 38 of 2001. This decision follows an inspection carried out in 2022.

South Africa's changing position in global trade examined through new lens

The approach to international trade has shifted from measuring the face value of a product to considering where production occurs. This change affects how the sophistication of a country's export basket is assessed. A recent paper utilizes the latest OECD Trade in Value Added database to re-evaluate cross-country export sophistication, as defined by Hausmann et al. (2007). The findings indicate that the gap between high-income and low-income countries' export sophistication is wider when viewed from a value-added perspective.

South African Reserve Bank governor discusses future of payments at 2024 conference

Governor Lesetja Kganyago of the South African Reserve Bank addressed the 2024 Payments Conference, focusing on the evolution and future of payment systems. In his opening remarks, Governor Kganyago highlighted the journey of modernizing payments, noting both past achievements and current challenges.

South Africa’s net international investment position decreases by R372 billion in Q2 2024

South Africa's positive net international investment position (IIP) decreased from a revised R2 424 billion at the end of March 2024 to R2 052 billion at the end of June. The decrease in the positive net IIP in the second quarter of 2024 resulted from both a decrease in foreign assets and an increase in foreign liabilities.