The understanding of these risks and their likely impact is necessary to avoid the unintended consequences of the cumulative modification of regulatory standards. As a member of the Basel Committee on Bank Supervision, South Africa continuously strives to strengthen its regulatory and supervisory framework as well as to promote and enhance the stability of its financial system.
The G-201, the Financial Stability Board and the Basel Committee on Banking Supervision have made significant strides in future-proofing the resilience of the global financial system and finalising the core elements of the regulatory reforms. The first phase of this new global regulatory initiative focused on ending the ‘too big to fail’ problem in order to reduce the risk to the fiscus and taxpayers.