Banks and the state have a role to play to change the thinking of South Africans
A poor savings culture is contributing to the difficulties facing local banks in meeting some elements of the pending Base III regulations.
Because of the low or zero interest rates offered by banks to ordinaty customers, saving is not attractive.
Sanlam chief economist, Jac Laubscher, said banks appeared to have concentrated on creating many attractive credit offerings, but placed insufficient focus on ways to save.
Base III will require banks to meet two key ratios: the liquidity coverage ratio and the net stable funding ratio.
The liquidity coverage ratio is aimed at ensuring that banks have a stock of high-quality liquid assets that can meet a 30-day cash outflow in the event of a crisis and a run on a bank. The net stable funding ratio is aimed at ensuring banks have enough long-term stable funding to protect against a protracted stress period of up to a year.
Laubscher said the local savings pool had to be grown and South African’s low propensity to save had to be addressed.
Mail & Guardian
June 15 to 21 2012
By going ‘green’ you can save a lot of money. People often borrow money to install some of Water Rhapsody’s systems, but once you are off the grid the rewards are endless. Who doesn’t want an account of R 50 p/month for their water consumption? Then you can afford to put some money away. With some of the cheaper systems you can reduce your account by at least half. Water conservation is a shared responsibility; please harvest rainwater and recycle your grey water. By conserving water you also save money – what a pleasure.