The South African Reserve Bank (SARB) has imposed administrative sanctions on Bank of China Limited, Johannesburg Branch (BOC Jhb) due to its non-compliance with the provisions of the Financial Intelligence Centre Act 38 of 2001 (FIC Act). This decision follows a FIC Act inspection conducted in 2021, which assessed data from the period between 2016 and 2020.
Using data on South Africa’s commercial banks from 2005 to 2018, this study investigates the impact of bank regulation on bank performance. The research employs a fixed effects model for regression analysis and the data envelopment analysis approach to estimate efficiency scores.
The study explores the consequences of implementing the net stable funding ratio (NSFR) on lending practices by South African domestic banks. It breaks down total lending into categories based on customer type, such as corporate versus household, and various loan types, including instalments, mortgages, credit cards, overdrafts, and other loans. The aim is to consider different risk profiles and maturities spanning short-, medium-, and long-term lending.
The Market Practitioners Group (MPG) has released an update on the transition plan for the Johannesburg Interbank Average Rate (Jibar). This document details the strategy to increase the adoption of the South African Rand Overnight Index Average (ZARONIA) in financial markets, moving away from Jibar.
The Johannesburg Interbank Average Rate (Jibar) is undergoing a transition, as announced on May 6, 2024. The South African Reserve Bank has provided updates regarding the shift from Jibar to alternative reference rates.
South Africa's financial sector has marked a significant development with the Corporation for Deposit Insurance (CODI) commencing operations on April 1, 2024. The establishment of CODI ensures that qualifying depositors in the country are now protected up to R100,000 for their deposits in accounts associated with qualifying products if their bank fails. The implementation includes clear guidelines on which depositors and accounts are eligible for protection and outlines how depositors can access their covered deposits should a bank failure occur.
The Federal Reserve Bank of New York has announced the publication of the indicative term rates for the Secured Overnight Financing Rate (SOFR). The announcement marks a significant development in the transition from LIBOR, which is set to be phased out by mid-2023. According to the release, these indicative term rates are based on a methodology that uses SOFR futures data.
The Securities and Exchange Commission (SEC) has approved the equity symmetric adjustment for 2024. This decision was announced on May 2, 2024, following a thorough review process.
The Central Bank has released the International Reserves Template for March 2024. The report provides a detailed account of the reserves held by the country, reflecting changes and trends observed over the past month.
The U.S. Census Bureau has announced the release of its monthly report, "Monthly Advance Economic Indicators Report," for March 2024. This report is part of an ongoing effort to provide timely economic data.
The recent evaluation of labor market dynamics in advanced economies (AEs) has highlighted several key issues that could affect the normalization of inflation. A noticeable shift in the Beveridge curve, which illustrates the relationship between job vacancies and unemployment, indicates changes in labor supply dynamics.
In recent years, geopolitical tensions have increasingly impacted the global economy and policy-making. This shift contrasts with the period following the 2008-09 Global Financial Crisis when investors prioritized economic performance over political dynamics. At that time, global policies were more aligned with economic conditions rather than political risks.
Thank you for joining us today to mark the launch of South Africa’s deposit insurance scheme. The big picture is that South Africa is joining a very common practice, globally, of offering deposit insurance. It is a universal business model of banks to fund their assets with borrowed money, and so depositors are actually investors in banks. Usually, we say investors must accept the risks of making investments. But deposits are special, and most governments protect them.
South Africa is facing potential economic challenges due to its high carbon intensity and low effective carbon price. This situation leaves the country vulnerable to economic disruptions from carbon border adjustment mechanisms (CBAM) and evolving consumer preferences. Although current assessments of the European Union's CBAM indicate minimal initial effects, these are expected to grow as more goods fall under such adjustments, additional countries adopt similar measures, and consumers increasingly favor less carbon-intensive products.
Despite ongoing challenges, GDP growth in the first half of 2023 surpassed expectations. The mining, manufacturing, and finance sectors performed better than anticipated. On the demand side, government expenditure and private sector gross fixed capital formation also showed stronger growth than expected.
The South African Reserve Bank (SARB) has announced the official launch of the Corporation for Deposit Insurance (CODI). This initiative aims to bolster confidence in South Africa's financial sector.
This article provides an overview of the Bureau for Economic Research's business sector inflation expectations data in South Africa. It includes firm-level dimensions and characteristics, emphasizing the importance of analyzing this data. The disaggregated data offers valuable insights for policymakers on how well "anchored" inflation expectations are and the extent to which inflationary pressures spread through the economy.
The Federal Reserve has announced that it will conduct a series of daily monetary operations starting April 25, 2024. These operations are aimed at maintaining the federal funds rate within the target range set by the Federal Open Market Committee (FOMC).
CODI has become operational this month, representing the result of extensive collaboration and effort among policymakers, lawmakers, regulatory authorities, industry bodies, and member banks. The support, input, and constructive criticism received over the past few years have been crucial in developing a deposit insurance scheme that demonstrates a shared commitment to strengthening the resilience of the financial sector.