South African state-owned enterprises: A drag on fiscal position and a threat to financial stability
For sustainable economic growth, development and employment creation, nations need a financial system that is “resilient to systemic shocks, facilitates efficient financial intermediation, and mitigates the macroeconomic costs of disruptions in such a way that confidence in the system is maintained” (South African Reserve Bank Financial Stability Review, 2018). Therefore, to promote a stable financial system, the South African Reserve Bank publishes a biannual Financial Stability Review that aims to identify and analyse potential risks to financial system stability, communicate such assessments and stimulate debate on pertinent issues. In its recently released Financial Stability Review (7 November 2018), the SA Reserve Bank identified the current main risks to financial stability to be...
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