This may be partly because the consumer loan market in Japan is dysfunctional: for example, there is a substantial divergence between interest rates on consumer loans by banks and those offered by consumer finance companies. Such a large gap may indicate the existence of unsatisfied financing demand of households.
Overall, despite some headwinds from a moderate economic growth scenario and some remaining fiscal challenges, the South African financial sector is assessed as strong and stable. The sector is characterised by well-regulated, highly capitalised, liquid and profitable financial institutions, supported by a robust regulatory and financial infrastructure. I have briefly highlighted the key issues raised in this FSR.