This follows a statement issued by the rating agency, stating that it has downgraded by one notch to Baa1 the country's four biggest banks namely
"The SARB notes the decision by Moody's Investor Service (Moody's) to downgrade four of
"While the SARB respects the independent opinion of rating agencies, we do not agree with the rationale given in taking this step, nor do we agree with the assessment it is based on," said the SARB's Head of
According to the central bank, on Tuesday, the rating agency refers to a lower likelihood of sovereign systemic support based on decisions taken recently in relation to
"This concern stands in sharp contrast to the support actually provided by the SARB.
"Notwithstanding this downgrade, Moody's has confirmed the resilience of the South African banking system and in their own view ... notes the broad resilience demonstrated by South African banks in the past, including the management of adverse economic environments, and recognises the solidity of key system financial metrics," said Mathebula.
Earlier this month, the
Abil will receive a R10-billion capital injection by a range of banks such as
The downgrade of the four banks follows the rating agency's downgrade of
"The South African banking sector remains healthy and robust," said the SARB.
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