Rather, allocative efficiency is sought through the price mechanism which operates best at arms length. The role of the central bank is then multi-faceted: in particular supervising the banks, large and small alike, implementing monetary policy for the economy as a whole – within a framework of inflation targeting – and maintaining the national payment system. 2.1.
Some recent developments  Three recent domestic developments warrant mention. The first two have to do with legislation, whilst the third has to do with competition. As noted in the South African Reserve Bank’s Financial Stability Review, March 2008, the Banks Amendment Act, No.