Steinhoff collapse does not pose financial stability risk: Naidoo

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Deputy Reserve Bank Governor Kuben Naidoo says the collapse of Steinhoff does not pose a financial stability risk for the country.

He says this is after they looked at how much Steinhoff owes local banks and how much bonds they hold in South Africa.

The Reserve Bank is one of the regulatory bodies called by parliament to talk about the implications of the Steinhoff crisis on the economy.

“Our view is that while the collapse of Steinhoff may result in losses for banks, lenders and investors, we do not think that this poses a financial stability risk. Even if every cent of those loans and investments are lost, it’s a relatively small portion of total assets under management. It’s fraction of the total capital held by the banking system.”