Financial top brass applaud Barclays

Finance Minister Pravin Gordhan and Reserve Bank Governor Lesetja Kganyago have thanked Barclays Plc for the manner in which they announced their exit from the continent.

In a statement yesterday, the duo applauded the bank’s “constructive, open dialogue, and commitment to implementing the new strategy in such a way that minimises the impact on the economies in which British bank Barclays operates”.

On Tuesday, Barclays announced its intention to pull out of Africa over the coming two to three years.

“The Reserve Bank will work with Barclays PLC and Barclays Africa Group Limited to ensure that any potential risks from the transaction are mitigated and appropriate measures will be taken to manage capital flows arising from the transaction,” Gordhan and Kganyago said.

“Barclays PLC noted that the key driver of the decision was global regulatory pressures. The return on equity at group level is significantly reduced because of the additional capital and other regulatory requirements a large global bank such as Barclays needs to meet.”

Gordhan and Kganyago also came out in support of the G20 summit, which took place in Shanghai last week. They said South Africa supports the overall direction of financial reforms, and will work with G20 countries to ensure that unintended consequences are reduced.

The summit sought to address any material unintended consequences for emerging markets and developing countries of the global financial regulatory reform agenda.

– Citizen reporter