South Africa Central Bank Sees Stress on Lenders From High Rates
- Bank says tough economic environment squeezing savings buffers
- Countercyclical capital buffers increased for banks in 2025
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The South African Reserve Bank said the quality of bank loan books has suffered amid high interest rates and announced plans to have lenders add protectively to their capital buffers in 2025.
“The longer interest rates remain high, combined with cost-of living increases, the more borrowers will experience strain,” the central bank said Wednesday in its Financial Stability Review. “This could manifest in rising non-performing loans and payment lapses, which could reduce capital and profitability in the financial sector,” it said.