we are greatly encouraged by the active and committed response by the private sector to partner us in seeking resolution for african bank. we believe that the package that has been put together with the support of the consortium is workable and substantive. shareholders will have an opportunity, by following their rights in the capital raising, to participate in the recapitalisation. we take the opportunity to repeat what we said in our statement last week : south africa ’ s banking sector remains healthy and robust. there have been no indications that other south african banks have been affected negatively by abil ’ s trading update or african bank ’ s current situation. this remains the case following today ’ s announcement. the role of banking supervisors is to make every effort to ensure that south africa ’ s banks have adequate capital, liquidity, and leverage ratios, as well as sound governance and appropriate policies. we are, and will remain, an active supervisor. but this can never substitute for management ’ s role and its responsibility to manage a bank. nor can it remove a board ’ s responsibility to ensure sound policies and practices in relation to corporate governance, effective risk management, as well as the strategic direction of a bank. notwithstanding the challenges facing african bank, government ’ s policy of financial inclusion is appropriate and important. this requires sound practices, appropriate lending relating to affordability and an increased effort to provide greater access to finance for entrepreneurs as well as small and medium enterprises. this will continue to be the challenge for all of us going forward as we, together, continue to maintain the strength of the banking and financial system. thank you and i will now take questions. bis central bankers ’ speeches

assisting the curator on the restructuring plan. mr spratt has been appointed as special advisor to the curator. other members of the team will be announced by mr winterboer in due course. he will also ensure that there is a specific help line to answer questions that clients of african bank may have. the curatorship is a protection procedure which gives the sarb the legal means to create the necessary space to implement a resolution plan capable of ensuring that the business of african bank gains a secure perspective for the future as a lending institution with a transformed business model. the curatorship and resolution process will : • ensure that the regular operations and collections of african bank continue effectively and efficiently • identify performing loans and assets to be maintained in a good bank • involve the purchase by the sarb of a substantial portion of the non - and underperforming assets and other high risk loans from african bank in order to separate them from the good bank, and also as a first step towards resolution of the challenges associated with these assets and loans • recapitalise the new entity by a capital raising of some r 10 billion underwritten by a consortium • provide current shareholders an opportunity to participate in the recapitalisation of the new entity and thereby of good bank the measures that have been taken are, in our view, in the best interest of all stakeholders, whether depositors, shareholders, creditors, or clients. i would now like to turn to the package of proposals that will guide mr winterboer in his endeavours to find resolution. bis central bankers ’ speeches firstly, i want to emphasise that african bank continues to operate during the curatorship and that mr winterboer will make decisions regarding the continued granting of loans and sound banking activities generally. african bank continues to be open for business. secondly, retail depositors represent less than 1 % of african bank ’ s creditors. we are therefore able to make an unequivocal commitment to all existing retail depositors that their money is safe, and that they can continue with african bank as their bank without fear that their deposits will be frozen or lost. they will have full access to their money in the ordinary course of business. thirdly, the resolution will see a private / public sector partnership. a consortium has been put together by the private sector. the consortium comprises absa bank limited, capitec bank, firstrand bank limited, investec bank limited, nedbank limited, standard bank limited, and the public investment corporation ( pic