As Governor Kganyago pointed out in the statement of the Monetary Policy Committee (MPC) last month, GDP growth is expected to come in at only 0,9 per cent this year. If the forecasts of the South African Reserve Bank (SARB) are correct, economic growth in 2016 will be the weakest in seven years.
But the current rules simply cannot keep up with the complex business of the global banking organizations toward which Basel II and its infrastructure prerequisites are directed. These organizations represent significant risks to the financial system should they develop substantial problems in a period of stress.