Industry Research: Financial Institutions

Image placeholder
South African Banking sector under pressure, with key credit quality indicators expected to follow a negative trend through 2020.
  • Industry Research: Financial Institutions
  • Year : Jun 2020
Access Now

The onset of the Covid-19 pandemic has compounded an already strained operating environment and will have a negative impact on asset quality for the banking sector.Unprecedented interest rate cuts by the reserve bank, together with higher credit losses and lower transaction volumes, will weaken profitability and potentially moderate strong capital buffers.

Additional Information

While the banking sector remained resilient amidst ever increasing economic challenges, exposure to highly impacted sectors has seen a deterioration in asset quality, albeit strong capital and liquidity management, coupled with good profitability meant that banks were well placed to absorb these risks.

Related Publications

South African Funds Peer Comparison

The South African Interest-bearing (“SAIB”) fund market amounted to ZAR793.5 bln (c. USD52 bln) at September 30th 2020

Trust for Urban Housing Finance (2014-10)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

GCR Risk Score Snapshot as of 10th Feb 2021

The GCR Ratings Framework is anchored upon the GCR Risk Score. This numerical scoring system, which forms a single analytical approach across multi...

Available Purchase Options: