In any case, having a large share of impaired claims in balance sheets puts pressure on banks’ capital and liquidity. The first safeguard against the risk of deteriorating credit quality is effective borrower screening based on objective criteria, robust valuation models and optimal utilization of the information available to assess customers’ prospects.
Introduction  Thank you for the invitation to address the Mail and Guardian business breakfast this time round. As you are all aware, South Africa is very much part of the global economy. This is particularly, evident on the economic front, where foreign investment and trade flows have increased quite significantly since the advent of democracy.