INTERNATIONAL rating agency Fitch says South Africa’s banking sector has begun to improve with the stronger economy, but further consolidation is needed to eliminate overcapacity. Consolidation could gain further momentum in the medium term with financial services groups Saambou and BoE possible candidates given that no single key shareholder exists for either, Fitch said. Fitch left its ratings for all of South Africa’s big four commercial banks stable at A1+ for short term debt and AA for long-term debt. They include Nedcor, Stanbic, Absa and Firstrand. South African banks had begun to be more proactive in helping companies that are overgeared and underperforming by restructuring their balance sheets and raising additional assets, Fitch said. – Reuters