I will finish by discussing the emerging challenges from the growing shadow banking activities, and draw some conclusions. Challenges of macroprudential analysis, policy, and implementation Successful macroprudential policy is a sum of three things: 1) good and timely analysis, 2) sufficient and effective policy instruments (tools), and 3) effective implementation. We are on our way in Europe to get this done.
Overall, despite some headwinds from a moderate economic growth scenario and some remaining fiscal challenges, the South African financial sector is assessed as strong and stable. The sector is characterised by well-regulated, highly capitalised, liquid and profitable financial institutions, supported by a robust regulatory and financial infrastructure. I have briefly highlighted the key issues raised in this FSR.