Governor sticks up for banks

Kganyago 'puts facts' in wake of president's slating of Covid credit

28 March 2021 - 05:07 By HILARY JOFFE

Reserve Bank governor Lesetja Kganyago firmly declined on Friday to respond to President Cyril Ramaphosa's attack on the banks for failing to lend to businesses under the government-backed loan guarantee scheme - but then went on to "put the full facts", arguing that by international standards SA's banks hadn't done badly and they had continued to pump credit into the economy despite Covid-related constraints on demand.

The governor was speaking a day after the Bank kept interest rates on hold at their lowest level in more than five decades, in contrast to Brazil, Turkey and Russia, which hiked interest rates in recent weeks after US bond yields surged, making it harder for emerging-market economies to compete for capital flows...

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