Gift an article

Nolwandle Mthombeni | When banks crash, who's watching the watchdog?

accreditation
Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
loading...
Loading, please wait...
0:00
play article
Subscribers can listen to this article
Nolwandle Mthombeni
Nolwandle Mthombeni
Supplied by author

When a bank fails, often the regulator comes under scrutiny for what occurred on its watch and what it did to prevent the failure. This occurred in the case of both African Bank and VBS Mutual Bank. In recent history, the Prudential Authority arguably did not always move swiftly enough to deal with a regulated entity that failed to fix its shortcomings. We should expect the whip to be cracked going forward, writes Nolwandle Mthombeni. 

Since 2014 there have been four instances where high-profile financial entities were placed under curatorship by the South African Reserve Bank (SARB). Increased pressure has been placed on our financial regulators to manage public perceptions, as a growing number of smaller financial entities are placed into the hands of curators. Of late, the processes and market communication have been strengthened and these changes come about as the regulator firms up their supervision and oversight abilities.

When a bank fails, much scrutiny gets placed on the regulator as to how it happened on its watch and what it did to prevent the bank failure from happening. This is what happened with the collapse of African Bank as well as VBS Mutual Bank. Whether logical or not, the man on the street sees one of the roles of bank regulators being the prevention of bank failures.

Read this for free
Get 14 days free to read all our investigative and in-depth journalism. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.
Subscribe
Already a subscriber? Sign in
Rand - Dollar
17.77
+0.4%
Rand - Pound
20.20
-0.0%
Rand - Euro
17.55
-0.1%
Rand - Aus dollar
11.52
+0.9%
Rand - Yen
0.12
+0.5%
Gold
1,709.45
+0.6%
Silver
20.89
+0.9%
Palladium
2,275.00
+2.3%
Platinum
913.00
+0.9%
Brent Crude
88.86
+4.2%
Top 40
59,231
+2.4%
All Share
65,702
+2.3%
Resource 10
63,522
+3.0%
Industrial 25
79,366
+2.4%
Financial 15
14,008
+1.4%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders