What: The Prudential Authority (PA) of the South African Reserve Bank (the supervisory arm of the bank), has published finalised Guidance Notices on how to manage climate-related governance and risk practices for banking and insurance, as well as on climate-related disclosures for banking and in...
First, by being viewed as TBTF, a bank receives an insurance policy against default from taxpayers but does not pay a premium for this insurance. Second, being provided with this insurance creates moral hazard since bank management can undertake riskier activities and reap the higher returns while...
We will improve the macro-control policy framework, maintain a lower limit to ensure stable growth and employment and an upper limit to keep a cap on inflation, and continue to implement a proactive fiscal policy and a prudent monetary policy. The government budget deficit for this year is p...