South African banks and financial institutions can withstand shocks after Britons voted in favour of quitting the European Union, President Jacob Zuma said on Friday.
President Zuma said in a statement issued by the presidency that the Treasury and the Central Bank were in talks with financial institutions on the possible implications of the Brexit vote on Africa’s most industrialised country.
He said “our banks and financial institutions are well positioned to withstand financial shocks to the system as demonstrated in previous episodes,including the 2008/09 global financial crisis.
“We are, therefore, confident that our financial system, including the banks and the regulatory framework are extremely resilient and reliable.”
Meanwhile, the Brexit vote had sent the rand tumbling more than eight per cent before paring some of its losses, while government bonds and stocks plunged into a tailspin.