For this reason, macro-prudential aspects of financial stability have gained traction in policy circles around the globe. South African policymakers have also engaged in a process of reviewing and revamping the regulation of the financial sector. In February 2011, the Minister of Finance announced that South Africa would be shifting to a “Twin Peaks” model of financial regulation.
At the end of last year, the National Treasury published the draft Financial Sector Regulation Bill (Twin Peaks Bill), which provides some detail around the architecture of the Twin Peaks model. In terms of the Twin Peaks model, a Prudential Authority (PA) will be established within the SARB to oversee the safety and soundness of banks, insurers, financial conglomerates and key financial market infrastructures.