We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

The government’s greater reliance on commercial banks for its funding needs is something to watch, though it is not an immediate source of concern for the SA Reserve Bank, which has the tools to act should the situation warrant it, deputy governor Kuben Naidoo said.

In the wake of SA losing its last investment-grade rating in 2020, the proportion of government bonds held by foreign investors has dropped, leaving local lenders to pick up the slack. An economy that shrunk by the most in a century due to Covid-19 and associated lockdowns in 2020 also depressed demand for credit, leaving bank deposits looking for a home, which they found in bonds that are offering attractive yields...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.

Commenting is subject to our house rules.