RISK
Intrusion by governments
into banking is now a fact
of life, be it in the form of
nationalisation, tougher
regulation, new taxes, or
pressure on business decisions.
particularly in risk management and compliance. In this regard,
South Africa will simply be reflecting the global norm.’
Several ongoing international reforms will also require
local banks to reconsider their models. These include the
US Foreign Account Tax Compliance Act (FATCA), which
is US-based legislation aimed at identifying US citizens with
income in foreign jurisdictions, as well as the Financial Stability
Board Framework.
Concerns about political interference in South Africa are rated
at number 10, though they form one of the top concerns (number
five) globally. The report suggests that one reason for this could be
that intrusion by governments into banking is now a fact of life,
be it in the form of nationalisation, tougher regulation, new
taxes, or pressure on business decisions.
Although bankers and regulators agree on the macroeconomic situation, and the credit and liquidity risks
affecting the banking system, they have divergent views
on the potential risks. The bankers place the perception
of regulatory and political risk as very high on their
list, while the regulators put this at the bottom. ■
PHOTOGRAPHS: ISTOCKPHOTO
The report can be downloaded from PwC’s website:
www.pwc.co.za/en/publications/banana-skins.jhtml
Edition 1
SA BANKER
47