The legal framework should address the resolution mechanism from a practical point of view and must have at least the following characteristics:   Early intervention before insolvency    Speed of intervention/resolution    Ability to transfer or merge operations    Effective write-down of shareholders’ rights    Protection of on-going business  6  BIS central bankers’ speeches  In addition to banks, the resolution mechanism should address resolution of other Systemically Important Financial Institutions (SIFIs) also.
In South Africa, the Bank has spearheaded several initiatives in recent years with respect to strengthening codes of conduct for Jibar and foreign-exchange markets, and, more recently, a push to enhance transparency in the broader money market. Yet professional associations and their members still need to play a key role, at home and abroad, in enforcing greater and more efficient selfregulation.