Reserve Bank confident banks are on top of potential property changes
'It will be interesting if you expropriate property that’s bonded,' says governor Lesetja Kganyago
The Reserve Bank is confident commercial lenders are on top of their game in analysing the potential effect of the ANC’s land expropriation policy on their financial health, and there is no immediate plan to subject them to stress tests, governor Lesetja Kganyago says. "It’s a conversation that’s going on among South Africans," Kganyago said in an interview with Business Day on Friday. "We haven’t engaged with that conversation. It will be interesting if you expropriate property that’s bonded. What do you do with the liabilities? Hopefully the people engaged in this conversation are thinking about it," said Kganyago. Land reform, thrust into the limelight on July 31, is one of the most contentious issues of Cyril Ramaphosa’s presidency, since he announced the ANC would seek to change the constitution to make explicit the conditions under which expropriation of land without compensation can take place. That spooked markets, sparking a fall in the rand, amid concern property rights br...