Banks under threat: Barclays Africa bleeds on Public Protector’s SARB call

Shares of Barclays Africa (Absa) fell over 1% at the close of trade on the JSE on Monday to R144.86 as Public Protector Busisiwe Mkhwebane delivered findings that shocked the country.

Barclays Africa was hard hit by Mkhwebane’s finding that Absa should pay back R1.125bn for the 1980s and 1990s Bankorp lifeboat – a finding that the bank already looks set to challenge.

Meanwhile, Mkhwebane, bizarrely, went on to detail – in just five sentences – a recommendation for the Constitution to ensure that SARB does not primarily focus on inflation targeting.

Clearly, apartheid sagas have returned to spook the banking sector. But the country faces an apartheid-styled setback if politicians start meddling with the Reserve Bank’s independence.

Gareth van Zyl June 20, 2017 | Absa, Barclays, Barclays Africa, Busisiwe Mkhwebane, pm-newsletter, Public Protector