The financial risks in advanced economies that might impact on the stability of the South African financial system, and which are discussed comprehensively in the Financial Stability Review, are   vulnerabilities in the euro area;    banking-sector vulnerabilities;    negative sentiment and declining prices in real-estate markets in a number of advanced economies; and    a broadening of the concept of global imbalances as trade, fiscal and investment imbalances have increased.
Our estimate is that the Government support that has been indicated will suffice. Our various scenarios also show private sector banks will not want for regulatory capital as a result of this exercise. Finally, the RBI is also working on identifying currently non-recognizable capital that is already on bank balance sheets, such as undervalued assets.