South African banks need to improve credit risk disclosure for transparency.
The top-5 South African banks were analyzed to see how well they disclose credit risk information in their reports. The study used a tool that looks at six main areas related to credit risk, like how banks describe their credit risk and their strategies for managing it. The results showed that the banks generally provided good information, but there were some areas where they could improve. Specifically, they could give more details about how they reduce credit risk and how they value collateral. This means that the public could benefit from more transparent information about how these banks handle credit risk.