At first the domestic financial institutions felt the impact of increased competition, but they now seem to have adapted well to the changed circumstances and have introduced various measures to improve their efficiency. The depth, breadth and stature of South Africa’s financial markets has been increased by a number of important developments in recent years.
The development of a eurorand bond market, the introduction of primary dealers in bond auctions and the successful launching of a domestic medium-term note programme deepened the South African bond market. Financial instruments have also been diversified and aligned more closely with developments in international capital markets.