Sarb ready to deploy countercyclical buffer from January
Central bank deems countercyclical capital buffer measure unnecessary at present
The South African Reserve Bank (Sarb) would be able to deploy countercyclical capital buffers from January 2016 if necessary, according to its financial stability report, published today (October 28).
However, based on credit-to-GDP data, the Sarb has decided to not activate the Basel III measure. "The credit-to-GDP gap remains well below any likely calibration of the lower threshold of the countercyclical buffer add-on for South African banks," the central bank said.
"Based on its assessment
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