By the end of October 2004, the return on equity and the return on assets of the banking sector had similarly improved. (iii)  Capital adequacy  The change in focus of the regulatory authorities from direct controls to a more market-based approach has been accompanied by an emphasis on proper capitalisation, sound risk-management procedures and greater disclosure.
South Africa adheres to the capital-adequacy guidelines for banks promulgated by the Basel Committee on Banking Supervision. The requirement to maintain capital equal to the full ratio of 8 per cent of risk-weighted assets was changed to a rate of 10 per cent by the  2/7  Registrar of Banks in 2001.