The intention of the policy is to make the failure of such entities less likely by requiring additional capital, and to make the consequences of failure less dramatic by developing better tools to resolve entities that have failed or are on the point of failure.
Some people tell a story that in February 2010 there was a letter from the Minister of Finance changing the SARB’s target and how the SARB is now ignoring that letter.5 It is strange for me to be told what that letter was about, because at the time I was Director-General in the Treasury, under Minister Pravin Gordhan, so I should know the content of that letter.