It can be argued that to some extent this stricter and more conservative approach to bank regulation in South Africa served to cushion the domestic industry from the practices that led to problems elsewhere. Basel III primarily addresses the problem of counter-cyclicality, quality and quantity of capital held at banks to absorb losses, and will introduce new standards for leverage and liquidity.
As far as debt flows are concerned, it is true that there are various restrictions both at the aggregate levels as well as at micro level. While the regime for regulation of external debt has been progressively modified to cater to the emerging resource needs of the economy, there are still issues on which a comprehensive view needs to be taken. Let me elaborate.