Regulator warns of SA banks’ exposure to ‘risky’ sovereigns

Prudential Authority urges banks with operations in the rest of Africa to extend credit cautiously

11 July 2024 – 05:00

UPDATED 11 July 2024 – 09:19

The Prudential Authority (PA) has called on SA’s big banks with operations in the rest of Africa to exercise caution when extending credit in countries where the risks of sovereign default and related sovereign credit rating downgrades are pronounced.

The regulator cited the example of Ghana’s sovereign default. Ghana defaulted on most of its overseas debt at the end of 2022…

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