Previous attempts at constructing a new term rate based on deposit transactions, as detailed in the SARB’s Consultation Paper (2018) and Technical Specification Paper (2020), failed due to design flaws and data insufficiency.
Such concerns have resurfaced among some observers, as the current long expansion has brought business borrowing to new heights. My own assessment is that even though business debt is elevated, at least by some measures, overall financial stability risks are not, as the financial sector has substantial loss-absorbing capacity and is not overly reliant on unstable short-term funding.