In such cases, we must ensure that our supervisory communications are forceful, clear, and directed at senior management and boards of directors, so that emerging issues are given proper attention and satisfactorily resolved. Consolidated supervision As we review the lessons of the crisis, another issue deserving attention is the role of consolidated supervision.
South African banks have very limited direct exposure to the troubled toxic securitised debt market in the US, partly owing to prudential restrictions on the type of assets and on the extent to which domestic banks are allowed to invest offshore. In addition, securitisation activities of our banks have been moderate and prudent.