Basel III regulations have not dried up credit extension in SA, study finds
Two Reserve Bank economists say this was mainly due to the big banks being well capitalised and operating with capital buffers that were larger than regulatory minimum requirements
01 February 2024 - 17:19
The implementation of Basel III regulations by SA’s banks — bolstered in the wake of the 2008/9 global financial crisis that required banks to raise capital held by the sector to ensure banks have enough buffers to respond to crises — has had a limited effect on credit extension.
However, the credit to households dried up following the financial crisis...
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