The Reserve Bank’s Prudential Authority says banks can go ahead with dividend payments as they put the finishing touches to their 2020 financial results. Some banks have already warned shareholders not to expect a payout.
âThe LGS, at R200 billion, was the single largest plank of the governmentâs R500 billion Covid-19 stimulus package announced in April, yet only about R18 billion of credit has been extended so far,â according to the executive summary of Intellidex’s latest research note.
Challenge is not unique to SA
However, Intellidex points out that this is the âexperienceâ of many countries that have created similar guarantee schemes.
âThe initial phase of [the] LGS was effective at providing tail risk cover for banks in that they were protected from substantial default rates should the credit environment have deteriorated. Compared with voluntary credit support offered by banks, LGS has done ‘ok’ in that context, though not in in the context of the headline size announced,â it says.
Blog
Blog
Blog
Blog
17 Feb, 2021 Author Matt Smith
South Africa s major banks need to improve transparency around their financing of fossil fuel industries, according to industry observers, who describe the current disclosures as trivial and not meaningful.
Environmental, social and governance issues were key features of President Cyril Ramaphosa s state of the nation address in the week of Feb. 8, in which he outlined plans for a just transition to a low-carbon economy and climate-resilient society. South Africa is one of Africa s wealthiest countries but its economy is still heavily reliant on coal, which accounts for 87.6% of its energy, International Energy Agency data shows.