( srf ), both in the short and in the long run, have to be addressed. the size of the srf has been criticized for being insufficient and its governance structure has been criticized as being overly complex. if a sound backstop is not in place, there will be pressure for stress tests to become softer, which would be a detriment to financial stability. the esm could become an effective backstop to the srf, safeguarding financial stability in the banking union. another issue that requires further reflection concerns the implications of implementing a single vs. a multiple point of entry in developing resolution plans. with respect to deposit insurance, aside from the deposit guarantee scheme directive ( dgsd ), the transposition of which is still pending in some member states, the proposed european deposit insurance scheme ( edis ) is of paramount importance. deposit insurance at the supranational level will contribute significantly to financial stability by providing a back - up when national schemes do not have the capacity to handle large shocks. such insurance will be a decisive step towards breaking the diabolical link between banks and sovereign and, along with a sound backstop to the srf, safeguarding stability across the banking union. it is also important to keep communicating with the markets. thus, we have to provide consistent communication on regulatory initiatives and macroprudential policies to reduce regulatory uncertainty. it is necessary to revise the legislation and eba guideline regarding the definition of the minimum distributable amount ( mda ) to bring it into line with other countries. we need to harmonize the minimum requirements for own funds and eligible liabilities ( mrel ) and the total loss absorption capacity ( tlac ), for example, by using the same definition of eligible liabilities for both tools and adjusting the relative thresholds. close cooperation between the ssm and the srb will be needed. one first area where this cooperation could be beneficial is at the level of the mrel. finally, we need to promote strategies for banking sector restructuring while having a comprehensive strategy to tackle npls. this is particularly important for banks with high npl ratios. 2. a second challenge ahead relates to the issue of the increased burden of complying with the new regulatory framework and assessing its cumulative impact. i am not referring to additional capital adequacy requirements. in the pursuit of making banks more robust, liquid, responsible and transparent, huge progress to regulate their operation and supervision has been

has developed into a modern financial city. one of the five - year strategic objectives identified in the city ’ s integrated development programme is improving the profile of johannesburg, both on the continent and internationally, as a core centre of finance, business and trade. this is to be attained by, among other things, improved liaison with key partners in the business community to define what the city can do over the longer term to help consolidate, protect and enhance johannesburg ’ s position in this regard. 4. a globally competitive city - region although the smallest in size compared to the other provinces, gauteng is the economic and financial powerhouse of south africa and the centre of the country ’ s commerce and industry. the gauteng province contributes 34, 2 per cent of the country ’ s gdp, 47, 2 per cent of all employee remuneration and 51, 4 per cent of all institutions ’ turnover. johannesburg accounts for 40 per cent of the economy of gauteng and enjoys the unchallenged status of being the economic capital of the country and the subcontinent. johannesburg is the continent ’ s only world city and a regional motor in the global economy. the city ’ s share of the national economy constitutes about 16 per cent. it is, therefore, obvious that the economic performance of a city like johannesburg becomes critical not only to the province in which it resides but to the country as whole. to a very large extent, it is the economic logic stemming out of this reality that informs the growth and development strategies of both the city and the province. central to both strategies is the strengthening of gauteng ’ s position as a global city - region, in recognition of the pivotal role played by cities in modern economies, political, social and environmental trends. city regions are not based on administrative boundaries but rather lay emphasis more on social and economic functional geography. also, some recent research suggests that strong city - regions are a necessary – even though they may not be a sufficient – condition for ensuring optimal economic growth. final report of a study entitled : a framework for city - regions, commissioned in december 2004 by the office of the deputy prime minister in the united kingdom. the gauteng growth and development strategy recognises the advantages of co - operating internally to compete externally. to this end, it advocates the development of a strategy to build gauteng as an integrated globally competitive region where the economic activities of the different parts of the province complement each other in consolidating gauteng as an