Details

Summary:

This Technical Note discusses stress testing (ST) results for the financial system of South Africa. The bank STs suggest that banks have adequate capital to withstand severe shocks, but need larger liquidity capacity to meet regulatory requirements. Even in the severe scenario in which GDP falls for three consecutive years, banks' capital buffers seem sufficient, although the impact of a large default could be significant. Banks also appear resilient to market risks in both the trading and banking books. Some banks, however, would have difficulty meeting the Liquidity Coverage Ratio without the Committed Liquidity Facility of the South African Reserve Bank.

Notes:

Part of the IMF eLibrary collection.
Description based on print version record.

Contributor:

International Monetary Fund. Monetary and Capital Markets Department

Other format:

Print Version: South Africa: Financial Sector Assessment Program-Stress Testing the Financial System-Technical Note

ISBN:

1498367607
9781498367608

ISSN:

1934-7685

Publisher Number:

10.5089/9781498367608.002 doi

Access Restriction:

Restricted for use by site license.