South Africa says non-bank financial institutions need closer monitoring
PRETORIA Oct 29 (Reuters) - South Africa's Reserve Bank said on Tuesday closer monitoring of non-banking financial intermediaries was necessary to reflect the liquidity and credit risk they pose to the financial system.
"Nearly all the services that banks provide can also be provided by shadow banks, with the main exception being, specifically in the case of South Africa, taking deposits from the public," the central bank said in its Financial Stability Review.
"The supervision of these entities needs to be adapted to reflect liquidity risk and credit risk, and to avoid unintended regulatory arbitrage." (Reporting by Helen Nyambura-Mwaura; Editing by Pascal Fletcher)
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