2023 Michel Camdessus Central Banking Lecture by Lesetja Kganyago, Governor of the South African Reserve Bank, at the International Monetary Fund, Washington, DC, 11 July 2023 The contribution of capital flows to sustainable growth in emerging markets Thank you for the honour of inviting me to give this lecture.
Other risks facing the banking sector mainly relate to interest rate risks, where the flat yield curve environment limits banks returns in their core business. There is a concern that this could encourage them to seek more risky ventures in an effort to boost profits, resulting in increased operational and counterparty risks from their growing exposure to unregulated financial institutions.