We are already increasing our capability to deliver effective prudential supervision, as the IMF FSAP and Trowbridge report on CBL Insurance suggested we should. This means more skilled people on the ground. It also means building the right analytical frameworks, taking a more sceptical view, and being more willing to act.
Banks and insurers can expect us to be more intrusive in our supervisory approach. This is already underway. We promote financial stability across our monetary and financial system The government has announced a new high level objective for the Reserve Bank – to maintain and enhance the stability of the financial system. ‘Financial stability’ has the advantage of clarity of purpose.