Equity market valuations, on the other hand, are currently at fairly elevated levels and a sudden and sharp correction in equity markets could reveal vulnerabilities that could have certain indirect negative effects on the financial system. South Africa has been participating in the FSB’s monitoring exercise of non-bank financial intermediation activities, or shadow banking as it is commonly known, since 2012.
Our partnership with the OECD can only provide more credence to our jurisdiction as an international financial centre of repute and will, at the same time, strengthen and facilitate adoption of international best practices. Under the agreement signed today, we shall cooperate in key fields covering a wide spectrum of economic and financial sector policies.