##overs, a greater analysis of risks and financial systems, stepping up assessments of members ’ external positions, and responding more promptly to concerns of member countries. all these changes were introduced with input from the g - 20, and south africa, as a member of the g - 20, actively participated in these discussions and decisions. the imf board of governors is advised by two ministerial committees : the international monetary and financial committee ( imfc ) and the development committee. the imfc has 24 members, drawn from the pool of 187 governors of the imf. the imfc discusses matters of common concern affecting the global economy and advises the imf on the direction of its work. bis central bankers ’ speeches in the area of financial regulation, the g - 20 has worked closely with the basel committee on banking supervision and other standard - setting bodies to agree on and implement key regulatory reforms, including ensuring resilient financial institutions, ending the “ too - big - tofail ” approach, addressing shadow - banking risks, and making over - the - counter derivative markets safer. basel iii was endorsed by the g - 20 in november 2010. the task of developing new standards was complex and time - consuming, requiring cross - border cooperation to ensure consistency on a multitude of issues between central banks, ministries of finance, regulators and supervisors, international organisations, and financial standardsetting bodies. while the basle iii rules have been agreed upon, the next phase of a timely, full, and consistent implementation is just as important to ensure level playing fields between jurisdictions and financial institutions and to address any unintended consequences of the reforms. due to the globalised nature of the financial system, it will be important to continue analysing the effects of individual jurisdictions ’ policies on each other to understand the positive and negative spillovers. the participation of the south african reserve bank the bank has a particular role to play in ensuring the stability and resilience of south african financial institutions and markets, thus contributing to and promoting globally stable financial systems. the bank fulfils this responsibility on an international, regional, and domestic level. similarly to many other jurisdictions, south africa is also reforming its domestic financial regulatory architecture and arrangements. in addition to regulating and supervising the banking sector and overseeing the national payment system, under the proposed twin peaks model of regulation the bank will also be responsible for the prudential regulation of the insurance sector and other types of financial market infrastructures, and will fulfil the function of the resolution

lesetja kganyago : south africa ’ s september 2014 financial stability review introductory remarks by mr lesetja kganyago, deputy governor of the south african reserve bank, at the launch of the september 2014 financial stability review, johannesburg branch of the south african reserve bank, johannesburg, 29 october 2014. * * * members of the press, guests and colleagues, welcome to the release of the september 2014 edition of the financial stability review. the financial stability review has been published semi - annually since 2004 which makes this year its tenth anniversary. in addition to its primary objective of price stability, the bank also oversees and maintains financial stability. in pursuit of this mandate and to contain systemic risk, the bank continually assesses the stability and efficiency of the key components of the financial system and formulates and reviews policies for intervention and crisis resolution. through the publication of its financial stability review the bank endeavours to communicate its assessment of potential risks to financial system stability. the bank also strives to enhance the understanding of, and encourage informed debate on these complex and challenging matters related to financial stability. south africa is in the process of reforming its financial - sector regulatory architecture by implementing a twin peaks model of financial regulation. under this approach, supervisory roles will be streamlined between the bank and the financial services board. the financial sector regulation bill, 2013, gives primary responsibility to the bank for promoting financial stability. in terms of this bill, a newly created prudential authority within the bank will be responsible for the prudential supervision of banks, insurers, financial conglomerates and financial market infrastructures. the financial services board, in future to be known as the financial conduct authority, will be responsible for consumer protection through its marketconduct regulation and supervision. the bank transformed its financial stability unit into a fully - fledged financial stability department with effect from 1 april 2014, and elevated the status of the financial stability committee which has been in existence since 2000 to include deployment of macro prudential tools. the financial stability review is currently being revamped in line with the explicit financial stability mandate of the bank and global best practice. the revamped publication will report in more detail on financial stability policy decisions once the new architecture is in place. the financial stability department is in the process of developing a toolkit of macro - prudential policy instruments in addition to further refining its monitoring framework for financial stability, developing a top - down stress testing model and preparing policy proposals for the development of a resolution