South Africa's securities lenders seek collateral clarity

Collateralisation in South Africa can be achieved using either a pledge or outright transfer – but the former does not provide complete protection and the latter can attract tax. The securities lending industry is pressing for an overhaul. Clive Davidson reports


Budget speeches are always a mixed bag. Governments typically try to give something to everyone, but no-one gets everything they want. So it proved with South Africa’s budget, delivered by finance minister Pravin Gordhan, on February 27. Faced with a shortfall in revenues, the government is opting to cut spending rather than raise taxes – affecting a range of programmes – but there were also some neat ideas to spur longer-term growth, such as tax incentives for businesses to get the young and

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Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

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