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GCR downgrades Sasfin Bank outlook, highlights regulatory risks


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  The ratings agency cites concerns over strategic transitions and ongoing legal challenges impacting the bank's stability.

The article from Moneyweb discusses how Global Credit Ratings (GCR) has downgraded Sasfin Bank's outlook from stable to negative, while maintaining its national scale long-term issuer rating at A-(ZA). This downgrade reflects concerns over regulatory risks and potential fines related to anti-money laundering and know-your-customer compliance issues. Sasfin Bank has been under scrutiny by the South African Reserve Bank's Prudential Authority, which has led to the bank setting aside R180 million for potential penalties. Despite these challenges, GCR acknowledges Sasfin's strong capital position, good liquidity, and a robust risk management framework. However, the negative outlook is due to uncertainties around the regulatory outcomes and their financial impact on the bank.

Read the Full Moneyweb Article at:
[ https://www.moneyweb.co.za/news/companies-and-deals/gcr-downgrades-sasfin-bank-outlook-highlights-regulatory-risks/ ]

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