A fall in global demand especially for durable goods and capital goods owing to the rapid contraction of global economic activity directly hit those industries, resulting in a substantial decline in exports and production. Since this spring, as the "acute pain" of the global economy has started to dissipate, there has been a reversal of the mechanism which I have just mentioned.
The FSR Act further requires the SARB to monitor and keep under review the strengths and weaknesses of the financial system, as well as any risks to financial stability. To this end, the SARB has developed frameworks for identifying, monitoring and mitigating systemic risks. On the whole, the SARB currently assesses the financial sector to be strong and stable.