{"id":282816,"date":"2018-11-10T09:00:17","date_gmt":"2018-11-10T07:00:17","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=282816"},"modified":"2018-11-09T14:39:18","modified_gmt":"2018-11-09T12:39:18","slug":"4-things-expected-to-hit-south-africas-financial-stability-in-the-next-year-according-to-the-reserve-bank","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/282816\/4-things-expected-to-hit-south-africas-financial-stability-in-the-next-year-according-to-the-reserve-bank\/","title":{"rendered":"4 things expected to hit South Africa&#8217;s financial stability in the next year &#8211; according to the Reserve Bank"},"content":{"rendered":"<p>The South African Reserve Bank (SARB) has <strong><a href=\"https:\/\/www.resbank.co.za\/Lists\/News%20and%20Publications\/Attachments\/8904\/Second%20edition%202018%20FSR.pdf\">released<\/a> <\/strong>its second annual financial stability review.<\/p>\n<p>One of the key focuses of the report is an analysis of some of the risks which could impact South Africa&#8217;s financial stability.<\/p>\n<p>&#8220;The SARB regularly assesses the risks to financial stability in the next 12 months, with a view to identifying and mitigating any risks and\/or vulnerabilities in the domestic financial system,&#8221; it said.<\/p>\n<p>&#8220;Potential threats to financial stability are identified and rated according to the likelihood of their occurrence as well as their expected impact on the domestic financial system.<\/p>\n<p>&#8220;The identified risks are classified as \u2018high\u2019, \u2018medium\u2019 or \u2018low\u2019 in terms of both the likelihood of each risk materialising and its possible impact on financial stability.&#8221;<\/p>\n<p>Four specific risks were focused on by the Reserve Bank, including:<\/p>\n<ul>\n<li>Weaker global economic growth<\/li>\n<li>Faster than expected tightening of global financial conditions<\/li>\n<li>Lower domestic economic growth<\/li>\n<li>Cyber-security risks<\/li>\n<\/ul>\n<p>Notably, the SARB said that there was a high likelihood of lower domestic growth, which could lead to a deteriorating fiscal position, rising debt levels and ratings downgrades triggering capital outflows.<\/p>\n<p>It also highlighted that cyber-security risks could have a high impact on South Africa, with the possibility for corporate security breaches and a crash of crucial financial infrastructure.<\/p>\n<p>Faster than expected tightening of global financial conditions is also expected to have a big impact on South Africa (should it occur), as it leads to a repricing of risk, an increase in capital outflows and possible exchange rate depreciation.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Risks.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-282824 aligncenter\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Risks.jpg\" alt=\"\" width=\"903\" height=\"910\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Risks.jpg 903w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Risks-150x150.jpg 150w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Risks-298x300.jpg 298w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Risks-768x774.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Risks-50x50.jpg 50w\" sizes=\"auto, (max-width: 903px) 100vw, 903px\" \/><\/a><\/p>\n<hr \/>\n<p><strong>Read:\u00a0<a href=\"https:\/\/businesstech.co.za\/news\/mobile\/282698\/mtn-nigeria-10-billion-feud-can-increase-risk-in-south-africas-financial-system-sarb\/\" target=\"_blank\" rel=\"noopener\">MTN Nigeria $10 billion feud can increase risk in South Africa\u2019s financial system: SARB<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The South African Reserve Bank (SARB) has identified four main concerns which could impact South Africa&#8217;s financial stability in the next year.<\/p>\n","protected":false},"author":10,"featured_media":260913,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26],"class_list":["post-282816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/282816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=282816"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/282816\/revisions"}],"predecessor-version":[{"id":282854,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/282816\/revisions\/282854"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/260913"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=282816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=282816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=282816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}