For example, under Basel I almost all first-lien residential mortgage exposures are subject to the same risk weight regardless of the borrower's creditworthiness, whereas Basel II provides for a more refined differentiation of low- versus high-credit-quality mortgage borrowers. Likewise, Basel I is inadequate for dealing with capital markets transactions such as highly structured assetbacked securities.
In fact, government appoints 8 of the 15 Board members, but it plays no role in the broader policy or regulatory decisions of the SARB. These decisions are the responsibility of the Governor and the Deputy Governors, who are themselves appointed by government. Private shareholders and Board members they elect have no influence whatsoever on monetary policy, financial stability or banking regulation.