Concretely, banks can react to the actual stance of monetary policy by changing the composition and the risk profile of their portfolio (“risk-taking channel” of monetary policy). This is another example of how macro-prudential policies can contribute to the effective conduct of monetary policy by addressing cyclical swings in risk taking in a timely manner.
I would also like to extend my thanks to our co-hosts, namely the National Treasury, in particular Deputy Minister Nene, and the Financial Services Board through Deputy Chief Executive Officer Bert Chanetsa. Last but certainly not least, I would like to thank the many staff members from all organisations co-hosting, who have contributed to the organization and success of this event.