The repo rate will remain unchanged at 5.75 percent, the SA Reserve Bank’s monetary policy committee decided on Thursday. SA Reserve Bank governor Gill Marcus said the domestic growth outlook remained “weak”. In January, the repo rate increased by 50 basis points to 5.5 percent, and in July it increased by 25 basis points to … Read more
Credit Ratings Agencies have been in the news a great deal in the wake of the collapse of Abil. The Moody’s decision to downgrade Capitec by two notches and then drop the rating of all SA’s Big Four banks drew sharp criticism, including from the SA Reserve Bank. Who are these agencies? What makes them … Read more
David Shapiro’s family has been through a tough time lately. Last week his home was broken into, his wife Linda and their long-serving staff tied up for a couple hours, with the thieves taking personal effects, many with only sentimental value. It’s tough to see any half full glasses so soon after such a traumatic … Read more
By Alec Hogg The 2009 World Economic Forum’s annual meetings in Davos were among the most eventful. Coming four months after the collapse of Lehman Brothers sparked the Global Financial Crisis, the WEF’s normally rational participants were unable to hold back. Those who had caused the mess, the bankers, were absent. So the WEF attendees … Read more
Capitec Bank says it has become an unwitting victim of the Abil collapse as global ratings agency Moody’s this evening announced a two notch downgrade of Capitec’s credit rating. The bank’s financial director Andre du Plessis described the Moody’s decision as a “total knee jerk reaction – we had a 30 minute telephone conversation with … Read more
Allan Gray’s disclosure this week that it owns 6.88% of the equity in now defunct Abil led to many drawing the conclusion that the firm had abandoned its conservative culture and taken a serious punt as the bank was dying. The reality is somewhat different as chief investment officer Ian Liddle explained in this fascinating … Read more
From the SA Press Association: The platinum strike was putting the country’s credit rating at risk, ANC secretary general Gwede Mantashe warned on Thursday. “We are still by and large a mining economy. Now, if your platinum sector is not producing for five months, that will impact on the overall performance of the economy,” he … Read more
Hi there, Nhlanhla Nene, SA’s new Finance Minister, proves that in politics, nothing is impossible. Two months back, the deputy to Pravin Gordhan looked to be headed for retirement as he was not on the ANC’s official list of National Assembly candidates. Former SA Reserve Bank Governor Tito Mboweni, 41st on that list, was widely … Read more
By Alec Hogg Former SA Reserve Bank Governor Tito Mboweni reacted angrily and then with concern after seeing the Sunday Times newspaper’s front page lead article claiming he had been shafted by President Jacob Zuma’s left wing allies. Mboweni, an adept user of Twitter with more than 60 000 followers, first became aware of the article … Read more
Nedbank Capital’s Nerina Visser works for one of the affected parties so was perfectly positioned to explain the R125m fine on the big four banks announced today by the SA Reserve Bank. Money laundering is a serious matter. But is it really necessary to levy fines ranging from R10m (Absa) to R60m (Standard Bank) for … Read more