Short-selling behaviour can cause financial instability – Sarb report
Short-selling of Capitec Bank stock could have caused financial instability, Sarb says
The South African Reserve Bank has warned of the negative effects of some short-selling strategies, saying a recent bout of selling could have threatened financial stability.
In its latest financial stability report, the Sarb says there was a “brief decline” in the share price of Capitec Bank after Viceroy Research released a report accusing the financial institution of overstating its financial assets and income. The central bank said at the time that the report was inaccurate.
“[The drop in
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