We support the SARB’s broader objective of modernising South Africa’s interest rate benchmark framework, enhancing transparency, and aligning domestic benchmarks with international best practice. We acknowledge the rationale advanced by the SARB that the prime lending rate (PLR) has evolved into an administrative reference rate.
The Minister of Finance, Enoch Godongwana, and the National Treasury have made the best possible use of a R21,3 billion tax revenue windfall: providing South Africans with some tax relief, while continuing to invest in economic infrastructure and reducing the cost of the national debt. The 2026 speech is a ‘good news’ budget, which will help increase the positive momentum
Banks offer each customer, on an individual basis, an interest rate for a loan that is quoted using prime as a reference rate. In line with monetary policy and inflation targeting, the South African Reserve Bank (SARB) makes use of the repurchase (repo) rate to influence short term interest rates in the market. This is a mechanism the SARB uses
The Banking Association comprises four divisions representing different interests of the banking industry.
Promotes access to, and the use of affordable, quality and appropriate financial services and products.
Contributes to the efficient management and development of the National Payments System.
Represents South African banks at local and international authorities who regulate the industry.
Represents the banking industry regarding legislation and regulation that affects their customers.
