The South African Reserve Bank (SARB) notes today’s decision by Moody’s Investor Service (Moody's) to downgrade four of South Africa’s major commercial banks by one notch and placed them on review for a possible further downgrade. While the SARB respects the independent opinion of rating agencies, we do not agree with the rationale given in taking this step, nor do we agree with the assessment it is based on.Once again, Moody’s refers to a lower likelihood of sovereign systemic support based on decisions taken recently in relation to African Bank Limited (African Bank). This concern stands in sharp contrast to the support actually provided by the SARB.Notwithstanding this downgrade Moody’s has confirmed the resilience of the South African banking system and in their own view “… notes the broad resilience demonstrated by South African banks in the past, including the management of adverse economic environments, and recognises the solidity of key system financial metrics …”  With a capital adequacy of 14,87 per cent, of which Tier 1 capital comprises 12,05 per cent; a financial leverage multiple of 13,43, impaired advances to gross loans and advances of 3,57 per cent and a return on equity of 14,25 per cent, the South African banking sector remains healthy and robust.Further Inquiries:Hlengani MathebulaHead: Group Strategy and Communications+27 82 4489219Hlengani.Mathebula@resbank.co.za​