Thus, the microprudential tools that have commonly been used to safeguard individual banks, such as minimum capital and liquidity ratios, need to be supplemented with a macroprudential approach to regulation. The SARB is currently researching a variety of potential macroprudential tools and financial stability risk indicators to improve the resilience of the broader financial system.
The SARB’s Financial Stability Committee has been set up to protect and enhance financial stability. It is tasked with considering qualitative assessments of the conjunctural assessments of risks to, and imbalances in, the broad financial system and formulating policy action to mitigate identified threats, as well as considering the appropriateness and adequacy of resolution policies and measures for crisis management.