Francois Groepe delivers special lecture

Posted by Johan Fourie on 2018-03-04

Prof Francois Groepe, Deputy Governor of the South African Reserve Bank (SARB) and honorary professor in the Department of Economics, delivered a special lecture in the department on Thursday, 22 February. His talk was on 'The special case of banks and the promotion of financial system-wide stability.'

Prof Groepe explained how mob psychology and mass hysteria could lead to a bankcrisis. Although some people believe this could happen randomly, there are empirical studies that suggest that these panics are related to the business cycle. “If depositors believe there is an impending downturn, they will anticipate difficulties in the banking sector and try to withdraw their funds which precipitates a crisis.

He mentioned, though, that the aggregate capital levels of South African banks – the total amount of capital that banks have available – are quite high, standing at 15/16% compared to a global average of 8%.

“Our banking system is quite resilient," said Prof Groepe.

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BER Weekly

12 April 2021
In the two weeks since the previous weekly release, the global newsflow on COVID-19 has seesawed. There were positive headlines as vaccine rollouts in many countries (excluding SA unfortunately) continued, resulting in a brighter outlook for global growth. However, this was countered by growing concerns about the near-term impact of renewed lockdowns...

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