*  *  *  Introduction Since the onset of the world economic crisis, monetary policy in the major advanced economies has been extremely loose. This has been helpful in supporting economic recovery in those economies, which has had positive spillover effects for developing countries, including South Africa.
Turning to financial institutions, vulnerabilities in the non-bank financial sector have also increased this year. The risk that forced selling by investment funds could amplify a market correction remains high, amid low liquidity buffers. Duration risk has started to materialise and remains elevated, and further bond portfolio revaluation losses may arise in the context of rising yields.