In the absence of agreement on the need for change, however, industry-based projects – which, after all, rely on mutual agreement – tend not to proceed sufficiently quickly. That observation leads to the second option – the possibility of the Reserve Bank using overt regulation may be enough to forge agreement among industry participants.
Background to the South African financial sector reform process Unlike many other countries on the African continent, South Africa has a well-established financial structure which includes a relatively independent central bank, sophisticated modern banking institutions and competitive financial markets. There developed, nevertheless, a need for far-reaching financial reforms in recent years.