BoB to ‘penalise’ banks for wholesale deposit concentration

Charges will take the form of additional capital requirements, Governor Lesego Moseki said, explaining that high concentrations of wholesale deposits were linked to rising interest rates and the threat of higher inflation.

“The bank notes with concern that some banks have increased lending interest rates, specifically margins above the prime lending rates, going against the spirit to the directive and maintenance of the accommodative monetary policy posture,” he said at a briefing. “The Bank observes that this reflects the continuance of structural deposit concentration and uneven distribution of liquidity. “As part of the implementation of the Basel III requirements, commercial banks will, during 2026, be compelled to hold additional capital for deposit concentration risk.”