Other regulatory initiatives include new legislation to grant us more extensive powers to supervise FMIs. Given our dependence on payment and settlement systems, their lightweight regulation and supervision is a crucial vulnerability.
We are working with banks and other stakeholders on a new mortgage bond standard, which will provide banks with an additional funding source, as well as provide banks and investors with a new tradeable instrument. It will also create a larger pool of standardised and transparent securities that the Reserve Bank can lend against as lender of last resort.