Banking

While South Africa’s banking sector already ranks as one of the best regulated and well capitalised in the region, regulatory changes are set to bring further improvements to the industry’s soundness and stability, as well as the treatment of its customers. The sector does, however, continue to face headwinds. As expansion of the broader economy has slowed, loan growth for banks has also eased. High levels of consumer credit, ratings downgrades and the closure of a local bank have also raised concerns. Nonetheless, growth amongst South African banks is expected to accelerate in the medium term. The sector is also set to benefit from ongoing investment in compliance and regional expansion over the long run, though the industry’s pivot to Africa is also likely to shift risk profiles.

This chapter contains interviews with Lesetja Kganyago, Governor, South African Reserve Bank; and Mike Brown, CEO, Nedbank.