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

daniel mminele : policy implications of some key market developments address by mr daniel mminele, deputy governor of the south african reserve bank, at the financial markets department ’ s annual cocktail function, pretoria, 3 march 2015. * * * introduction ladies and gentlemen, good evening. thank you for attending this year ’ s financial markets department cocktail function. it has almost become tradition for me to take stock of major global and domestic market developments that occurred during the past year, and to briefly reflect on their implications for south africa. in the past, we also used this event to brief you, our partners in financial markets and other stakeholders, on key projects undertaken, changes and innovations introduced in the financial markets department. this year, though, i would like to take a slightly different approach. rather than providing a detailed review of operations over the past year, i will look at what i think are potential challenges that market participants and policymakers are likely to be confronted with in the period ahead. given the time constraints, i will focus on the policy implications of some key market developments. you will, however, not be deprived of information about recent developments and activities of our financial markets department. i have the pleasure of announcing the launch of the newsletter called fmd update, copies of which will be available tonight. the newsletter will also be available on the bank ’ s website. what has not changed and will not change is the importance of central bank interaction and communication with the markets, especially in light of the new views on the role of forward guidance in its various forms. forward guidance, in more formal or less formal ways, appears to have graduated from what was essentially a crisis - fighting instrument to now being advocated by some as part of the standard toolkit of central bankers, even in normal times. recent experience has shown how sensitive financial asset prices have become to changes in signals over future policy. we therefore continue to value our ongoing interaction with yourselves as market participants, as you are in essence part of our transmission mechanism of monetary policy. monetary policy divergence, the stronger us dollar, and global imbalances but let me get back to market issues and policy. one of the key trends observed over the last few quarters has been the steady appreciation of the us dollar against the backdrop of divergent monetary policies in advanced economies. at first glance, such a recovery in the us currency seems consistent with the improvement in us economic prospects. us gdp growth continues to outpace that of the eurozone and japan,