In the normal course of events, healthy banks are encouraged to lend the deposits that are entrusted to them in a process called financial intermediation, where banks make savings available for investment and economic development. However, when banks face difficulties and become unable to service their obligations as they fall due, their creditors, including depositors, risk suffering ruinous losses.
Conclusion  Notwithstanding the volatility in the exchange rate of the rand, we are convinced that there is every reason to be confident regarding the future path of the rand. With prudent fiscal and monetary policies in particular, and good economic policies in general, being in place, we are expecting the current relatively modest but sustainable economic growth to continue.