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Banks lose R61bn on Gordhan ouster, S&P downgrade

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Johannesburg - South Africa’s banks have since the ousting of Pravin Gordhan and his deputy Mcebisi Jonas lost R61bn so far.

The fallout was however muted compared to the market rout suffered when finance minister Nhlanhla Nene was fire in December 2015. That wiped more than R155bn off the index’s market value in two days

On Tuesday the JSE Banks Index fell to the lowest in six months after S&P Global Ratings cut the sovereign’s foreign-currency debt rating to junk, increasing the likelihood that lenders will have to battle declining returns and rising bad debts in the year ahead.

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