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S.A financial sector growing amid gloomy economic times

PUBLISHED: Wed, 26 Oct 2016 12:48:48 GMT

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Despite low GDP growth and constrained household balance sheets, South Africa’s financial sector has grown by 2.2 per cent during the first half of 2016 compared with the same period in 2015.

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This according to the country’s medium term budget policy statement (mid-term budget), tabled by Finance Minister Pravin Gordhan, at the National Assembly on Wednesday.

The mid-term budget further stated that the country’s domestic banks remain well capitalised, with a total capital adequacy ratio of 15.2 per cent in June 2016, up from 14.2 per cent in December 2015.

“Tier 1” capital adequacy, the highest quality capital reserves, stood at 12.4 per cent in June 2016, well in excess of Basel III’s 6 per cent requirement.