I will emphasise a few changes that are expected of banks in order to yield and realize full benefits of the Risk Based Supervision initiative. Firstly, the role of the board has been clarified and expectations heightened to an extent that the board can not be a peripheral figure of banks any more.
South Africa, being a structural net capital importer, needs to secure the best possible “terms and conditions” under which it accesses global sources of funding. Any adverse developments on this front would probably further complicate the challenges of weak growth and rising inflation that the Bank has to deal with currently.