However, having monetary policy and macroprudential policy under one roof, (and indeed microprudential policy), facilitates coordination, but implies more responsibilities for the central bank. The approach that we have adopted in South Africa is in line with this second approach. In terms of the Twin Peaks regulatory architecture, the responsibility for financial stability and macroprudential policy has been given explicitly to the Bank.
At present, this function is undertaken by the Bank’s Financial Stability Committee (FSC) which includes all members of the Monetary Policy Committee.