The role of Supervisors is to evaluate whether or not the banks are assessing their capital requirements under pillar 2 properly in relation to their risks & if necessary the supervisors may intervene to mandate a higher capital requirement. However, it is important to note that increased capital is not the only option for addressing increased risks in a bank.
Looking ahead, the Bank’s view of the economy remains positive but depends on the pace of international recovery. We expect growth of about 3 per cent this year. Our continuing potential is for growth of some 4½ to 5 per cent per year. 2. Inflation  Undoubtedly a key risk to growth is inflation, with its potential to seriously impact on the country’s competitiveness.