Sarb, climate shocks, economy

DEPUTY GOVERNOR: ANSWERS QUESTIONS

- Danny Bradlow

Climate change poses economic and social risks that can affect the workings of the financial system – the complex interaction of financial institutions and markets. Central banks have a responsibility to ensure that financial systems can survive and manage climate-related shocks.

To tease out these issues, Danny Bradlow posed questions to Fundi Tshazibana, deputy governor of the South African Reserve Bank (Sarb), CEO of the financial sector regulator, the Prudential Authority, and vice-chair of the Network for Greening of the Financial System.

Is environmental sustainability part of the Reserve Bank’s primary responsibilities?

Sustainable economic growth implies that an economy is growing continuously at its potential and avoiding boom and bust episodes. It also implies that nature’s resources are being used sustainably in the process. Different public economic institutions are equipped with tools to manage the various aspects of sustainable growth.