[11] But the supranational levels has an equally important responsibility for financial stability. The national level might act too late if risks to financial stability emerge, and it may insufficiently take cross-border spillovers of risks to financial stability into account. The supranational level thus plays an important role in monitoring spillovers, ensuring best practices, and establishing effective mechanisms to mitigate a potential inaction bias.
Keynote address by Lesetja Kganyago, Governor of the South African Reserve Bank, at the Conference on Financial Intermediation in Emerging Markets hosted by the University of Cape Town / Imperial Business School / Economic Research Southern Africa / Review of Finance Cape Town 7-10 December 2016  Good morning, ladies and gentlemen.