In contrast to many other emerging markets, inflows of nonresident capital (be they portfolio flows or bank loans) have not spilled over into excessive domestic credit growth. Equally, residential property prices have been subdued since the global financial crisis. Where does South Africa stand at present?
To the extent that more stable retail deposit financing has been replaced by wholesale funding, banks may have become more exposed to market dynamics and perceptions, constituting a potential source of instability in the banking sector. 7  6  See Banking Supervision Committee (2009), “EU Banking Structures Report”, forthcoming in October. 7  A. Shleifer and R.W.