PRETORIA South Africa (Xinhua) --
Representatives from African central banks are
holding a four-day meeting in Pretoria, South Africa, to discuss
the impact of International Financial Reporting Standard 9
(IFRS9) on banks and regulators in the continent.
The workshop is
organised by the Working Group on Cross-border Banking
Supervision and the South African Reserve Bank (SARB).
Opening the workshop
on Monday, Francois Groepe, deputy governor of SARB, encouraged
Association of African Central Banks to tackle challenges
international financial standards will prevent the repeat of the
disastrous global financial crisis of 2007-2008, Groepe said.
He said the crisis
highlighted the systemic costs of a delayed recognition of
credit losses on the part of banks and other lenders, and the
application of the prevailing standards at the time was seen as
having prevented banks from provisioning appropriately for
credit losses likely to arise from emerging risks.
resulted in the recognition of credit losses that were widely
regarded as “too little, too late,” and gave rise to questions
of pro-cyclicality by spurring excessive lending during the boom
and forcing a sharp reduction in the subsequent bust, he added.
experts believe that after that global financial crisis, banks
are now better capitalized with higher buffers and are better
able to absorb losses.
The SARB deputy
governor said while many workshops have been held in the past
two years, there have never been one focusing specifically on
“There are factors
that are unique to Africa that need to be taken into account,”
Groepe said. “With this workshop, we want to fill this gap and
provide a platform for African regulators to discuss the
specific issues and concerns that may affect them in the
implementation of IFRS 9.”
Accounting Standards Board issued IFRS 9 on July 24, 2014, to
replace the existing standard. IFRS 9 has a mandatory effective
date of Jan. 1, 2018.
Johannesburg Stock Exchange
closes lower on Tuesday pulled down by Naspers
JOHANNESBURG South Africa (Xinhua) --
The Johannesburg Stock Exchange (JSE) tumbled sharply on Tuesday
after a public holiday in South Africa on Monday, with
industrial stocks leading the broad-based declines.
Naspers, by far the
biggest share on the JSE representing more than 12 percent of
its market value, pulled the JSE sharply lower on Tuesday.
Naspers was off 3.19 percent to R2867.59.
The South Africa
rand was at R13.4 to the U.S. dollar, down from R13.32, at
R15.76 to the euro, up from R15.79, and at R17.94 to the pound,
up from R17.95.
The all share index
was off 1.38 percent to 55,070.38 points at close of session.
The top 40 index was 1.5 percent down at 48,819.35 points. The
industrial index dropped 1.56 percent, and the financial index
Gold shares gained
0.86 percent after the gold price rose more than 1 percent on
political uncertainty, but resources shares were also 1 percent
Anglo American was
off 2.49 percent to R231.2 and Assore 3.44 percent to R258.30.
Bank and financial
stocks were also much weaker, with Barclays Africa losing 1.95
percent to R136.87, Capitec 2.64 percent to R884.70 and Standard
Bank 3.03 percent to R157.72.
Sanlam gave up 2.34
percent to R67.49 and Liberty Holdings 1.6 percent to R101.75.
1.9 percent to R58.73 and Steinhoff 1.12 percent to R59.22.
International was down 4.45 percent to R116 and Aspen 1.95
percent to R306.01.
Shoprite, which will
soon be part of the Steinhoff Retail Africa group, lost 0.23
percent to R205.55.