South Africa Eases Bank Rules to Free $17 Billion for Loans

South Africa’s banking regulator plans to give banks a break from accounting and capital rules that could release around 300 billion rand ($17 billion) for lending to help the economy cope with the fallout of the coronavirus, Bloomberg News reported. “It’s quite big, it’s quite meaningful,” said Kuben Naidoo, deputy governor of the South African Reserve Bank and chief executive officer of the Prudential Authority, in an interview. “We will need to evaluate in one or two months whether this is enough.” The regulator joins other banking authorities around the world that have relaxed rules to keep credit flowing to counter the economic havoc caused by the pandemic. South Africa’s proposals include dropping minimum capital requirements and compulsory reserve funds for lenders, reducing the liquidity coverage ratio to 80% from 100% and relaxing accounting standards when determining potential losses. Read more