borrowing requirement of the public sector in the past fiscal year can be attributed to substantial improvements in the financial position of the national government, provincial governments and the non - financial public enterprises and corporations. a decline in investment spending by public enterprises and corporations was responsible for approximately 25 % of the reduction in the public - sector borrowing requirement. the remaining 75 % saving in the borrowing requirement was largely due to the considerable restraint with expenditure allocations exercised by the national government and more efficient procedures for collecting income and other taxes. it is important to note, however, that part of the curtailment in expenditure over the past five years may have been achieved at the cost of the development and maintenance of the economic and social infrastructure of the country. there is a delicate balance between containing expenditure and maintaining the infrastructure required for economic development. greater price stability the effective fiscal, monetary and other policy measures pursued by the authorities, in conjunction with lower international inflation, succeeded in creating greater price stability in south africa. in 1998 and 1999 the rate of increase in the consumer price index excluding mortgage interest costs ( cpix ) averaged 7 % per year. this rate of increase can be compared with inflation rates fluctuating around 15 % in the 1980s and early 1990s. during 1999 the twelve - month growth rate in the cpix slowed down from 7. 3 % in march 1999 to 6. 5 % in october, but then accelerated to 8. 0 % in july 2000. the rise in inflation was largely due to shocks such as higher international oil prices, floods and volatile financial markets. when the effects of the price rise in petrol, diesel and food are omitted from the cpix, the rate of increase over twelve months in other consumer prices fell from 6. 8 % in october 1999 to 6. 7 % in july 2000. the year - on - year increase in the all - goods production price index accelerated from a low rate of 2. 3 % in march 1998 to 10. 1 % in april 2000. this rate of increase, which normally precedes changes in consumer prices, slowed down to 8. 6 % in july 2000 in line with the appreciation in the external value of the rand. recent developments in monetary aggregates bode well for the inflationary outlook, provided that the direct impact of external shocks wears off and that the secondary effects of the increase in oil prices can be contained. the level of the broadly defined money supply ( m3 ) at the end of june 2000 was virtually the same as at the end of

. ( iii ) proper implementation of evolving guidance of regulatory standards for special features of islamic without comprising international standards to which both islamic and conventional banks are to be subject too. ( iv ) development of more interfaces between regulators – so far there seems to have been more systematic alliance between central banks to coordinate standard setting and its compliance. there is however need for better coordination between bank and non bank regulators and also for later to launch more initiatives to nurture nonbank islamic sector. the mckinsey qaurterly : rethinking regulation for islamic banking. nasr - eddine benaissa, xavier jopart, and ozgur tanrikulu. 2007.