SARB warns that geopolitical tensions threaten financial stability

# The South African Reserve Bank has warned that rising geopolitical tensions and global policy uncertainty pose major risks to the country’s financial sector. In its Financial Stability Review, the bank states that trade disputes and conflicts like the Israeli-Iranian crisis are driving up oil prices and investor caution. The review indicates this increases the risk of capital outflows and higher state borrowing costs. The central bank also completed its first climate risk stress test, finding major banks moderately prepared.