And it might induce governments to postpone necessary structural reforms and the consolidation of public finances. In my view, this could be the biggest threat to the recovery process. The improved outlook together with low interest rates could lead to complacency and reform fatigue. We cannot let this happen.
Competition has been strong. Ladies and Gentlemen, because of the important service that commercial banks provide, it is vital that we ensure that they continue to operate soundly and safely. The soundness and safety responsibility is at the core of the Reserve Bank’s financial stability mandate.