Reserve Bank warns that banks will need to raise more provisions
The Bank’s Kuben Naidoo says there are ‘no easy options’ as the struggling economy battles through the pandemic
SA banks will probably have to raise further provisions for bad loans as measures to contain the coronavirus weigh on the struggling economy, hindering the ability of customers to repay loans.
“We have a pretty good handle on the banks’ estimates of non-performing loans and they have all raised provisions for this,” Kuben Naidoo, a Reserve Bank deputy governor and CEO of the Prudential Authority, which oversees lenders, said in an interview. “You will continue to see that.”..