SA banks becoming battleground in Zuma war - analysts

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Cape Town - South Africa’s banking sector is becoming a battleground between President Jacob Zuma’s patronage-driven ANC and those opposing that faction, said two analysts from the global bank BNP Paribas. 

Nic Borain, political analyst, and Jeffrey Schultz, economist, said in a joint report issued by the bank that the noise surrounding the leaked report on Absa’s so-called bailout,  Mineral Resources Minister Mosebenzi Zwane’s comments last year about a bank investigation, as well as the lack of urgency in signing the Financial Intelligence Centre (FIC) Bill into law are interrelated. 

“All this points to modest systemic risk for South Africa’s financial services sector,” Schultz and Borain said, which could even lead to an eventual credit rating downgrade later in the year. 

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