SA revamps processes for managing distressed banks

South Africa is revamping its processes for placing troubled financial institutions under administration, with the central bank playing a pivotal role. Under an amendment to financial sector legislation, which was signed into law in January, the South African Reserve Bank assumes overarching authority over failing financial institutions, and has the power to transfer their assets and liabilities, assume control of their management and restructure banks.

” The new law also entitles the central bank to force creditors of failing financial entities to convert their debt into equity, a process it describes as a “bail-in mechanism,” which will enable them to be recapitalised and return to viability. Deposit insurance “Bail-in is based on the principle that a failed or failing designated institution should not be bailed out by using public funding,” the review states.

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Sarb flags inflation as major risk to domestic financial system.SAReserveBank flags concerns that rising inflation and inequitable growth could lead to more incidents of social unrest like that in July 2021. Sarb stagflation
Source: Moneyweb - 🏆 5. / 77 Read more »

Skills development body: SA needs to urgently address mismatch in labour marketThe country’s youth unemployment (youth being those aged between 15-34) rate currently sits well over 65%. According to Stats SA, 32.8% of all those aged between 15-24 were not in education, employment or training.
Source: ewnupdates - 🏆 30. / 53 Read more »

SA might have the edge over US in abortion policy, but is behind on accessThe law, access and funding must go hand in hand to give women autonomy
Source: BDliveSA - 🏆 12. / 63 Read more »

SA experts don't see need for mass monkeypox vaccinationSA disease experts said on Wednesday they did not see a need for a mass vaccination campaign against monkeypox or believe cases would spread in the same way as Covid-19. I hope they monitor and do tests at entry points. They should not forget how we got COVID-19. For now there isn't, but no one can predict what tomorrow will look like
Source: SowetanLIVE - 🏆 13. / 63 Read more »

'Winning URC SA Shield restores faith, pride in Stormers jersey,' says Dobson | The Citizen“We didn’t lose to the Bulls or Sharks in the local derbies, and that’s special.” I was scammed through Bitcoin couple of months ago, I started hating Bitcoin until I was introduced to Allison_Grillo, and I gave Bitcoin trading another try, I successfully withdrew $35,000 after two weeks of trading, am so grateful Allison_Grillo thank you.
Source: TheCitizen_News - 🏆 6. / 75 Read more »

Carbon-neutral commitments lacking in SA corporatesCompanies failing to act on environmental, social and governance targets risk losing investors, warns pwc_za. net-zero carbon-neutral governance
Source: ITWeb - 🏆 45. / 51 Read more »