services and supporting processes in line with customer interests and conduct regulation. ( iii ) capital and liquidity risk internal audit should include within its scope the management of the organisation ’ s capital and liquidity risks. conclusion after much discussion and debate, we have to accept that, after nearly seven very challenging years, new challenges are being faced, which poses specific risks for emerging economies in particular. some of these challenges include the unwinding of the extraordinary monetary policy actions in the us which is largely untested territory as there is no prior history to guide us. nonetheless, i will not delve into this topic at present as we could spend many hours discussing the various issues surrounding it. let me stop here and thank you for the opportunity to talk to you today and to share a few ideas on the fascinating topics of financial stability and corporate governance. there is no question that good corporate governance and sound accounting and auditing standards and effective audit functions contribute significantly to sound, stable and well - functioning financial systems. thank you. bis central bankers ’ speeches

times may result in diversion of policy choices. in south africa, cross membership between the bank ’ s monetary policy and financial stability committee structures facilitates such coordination. the bill also recommends a single committee structure for financial stability, namely the financial stability oversight committee ( fsoc ), chaired by the governor of the bank. the fsoc ’ s mandate will be to continuously monitor the financial system for risks and initiate any action necessary to mitigate or remedy a risk. the fsoc thus will have a financial stability responsibility, in the same way as the monetary policy committee ( mpc ) does for price stability, and will be able to hold to account various authorities or economic agents on actions to be taken to mitigate against / reduce systemic risk. the bank ’ s expanded mandate for financial stability will not impact on its price stability mandate, which, eluded to above, is a narrowly defined, formal and explicit mandate. the bank will therefore still be independent and free from influence in pursuing its primary objective of achieving and maintaining price stability. given this expanded role, it will require of central banks to evolve and to face up to the increased demands for greater accountability. central banks will need to communicate on matters relating to financial stability, manage situations where conflicts arise in the goals of monetary policy and financial stability, and moderate unrealistic expectations of what can be achieved by financial stability policies. south africa, as a member of the group of twenty ( g20 ), is committed to promoting financial stability and contributing towards strengthening the resilience of the global financial system. the role of the auditing profession in supporting financial stability there are a number of important and close linkages between the financial stability objective of the central bank and the auditing profession. as mentioned earlier, one of the four main aspects of the bank ’ s financial stability mandate is to promote the robustness of the financial system architecture. this is performed through a process of benchmarking the financial architecture of south africa against the financial stability board ’ s twelve standards for sound financial systems. amongst these standards are international standards on auditing ( isa ) issued by the international auditing and assurance standards board ( iaasb ). as part of the reports on the observance of standards and codes ( rosc ) initiative, the world bank has established a programme to assist its member countries in implementing international accounting and auditing standards for strengthening the financial reporting regime. this enables authorities to analyse comparability of national accounting and auditing standards