In the past financial year, thorough preparations to avoid the possible impact of the transition to the year 2000 ensured that normal operations were maintained. Some of the smaller banks experienced temporary liquidity problems which were largely solved by allowing the affected banks to discount their cash reserves and statutory liquid-asset portfolios.
The funding and other corrective measures enabled the affected banks to restore liquidity positions during the first quarter of 2000. South African banks are well run with sophisticated risk-management systems and corporate-governance structures.