are not immune to such attacks. reported attacks on swift, 3 the financial messaging network that underpins most international money transfers, have the potential to paralyse global trade and finance, albeit for only a short while. spare a thought for ordinary citizens, your customers, who, with their limited resources and information asymmetries, are the most vulnerable and often the biggest losers in attacks where illicit financial gain is the key motive. innovations, such as the advances in biometrics and digital identities, hold great promise for individual security. we wait for industry to translate these gains into suitable security measures applicable to corporations. innovation, however, cuts both ways. advances in, for example, cryptography prompt further improvement in decryption technology. we therefore cannot be complacent about our cyberdefences. given this threat landscape, it is no surprise that cybersecurity has in the recent past moved swiftly up the list of priority issues in a number of countries as regulatory authorities seek to address cybersecurity threats and enhance cyber resilience. as a central bank and a regulator in the financial sector, the sarb would be remiss in its duty if it ignored the growing risks emerging from the financial services sector ’ s increasing reliance on cyberspace and the internet. because of its access to capital, the financial sector is a key target. cyber - related attacks are therefore more likely to be directed at financial systems, institutions, and their customers. hackers ’ attacks are also becoming more sophisticated as their understanding of the value chains in financial services improves. at an international level, global standard - setting bodies – such as the international organization of securities commissions as well as the committee on payments and market infrastructures – recently issued a document titled guidance on cyber resilience for financial market infrastructures that should be used to address the cyber resilience of fmis. while these guidelines are aimed directly at fmis, it is important that fmis actively reach out to their participants and other relevant stakeholders to promote the understanding and support of resilience objectives and their implementation. carney, m. enabling the fintech transformation : revolution, restoration or reformation? bradshaw, s. december 2015. combatting cyber - threats : csirts and fostering international cooperation on cybersecurity. paper series no. 23. chatham house : the royal institute of international affairs. society for worldwide interbank financial telecommunication. bis central bankers ’ speeches the guidance document covers themes such as :

subsidiaries in south africa, and more than 60 international banks with representative offices in the country. these foreign banks provide enhanced competition for the south african banks, particularly in the field of wholesale banking, international trade financing, and in the market for foreign exchange. the liberalisation of the financial market also opened up opportunities for unscrupulous financial operators that are making use of the opportunity to exploit ignorant south africans with offers of unrealistic yields on deposits, and promises of instant miraculous profits on financial investments. it is amazing that so many south africans still fall for deceptions such as the ill - fated pyramid schemes that has just recently pushed albania over the edge of complete social and political collapse. it is even more amazing that the efforts of the registrar of banks to protect the south african public against inevitable losses through these exploitations must be defended in courts and in time - consuming litigations. in his efforts to avoid an albanian situation from developing here, the registrar is even accused of acting against the constitution. the changing financial environment also holds important implications for monetary policy in south africa. the explosion in the volumes of transactions in all the financial markets, the greater participation of all south african residents in financial market operations, the reintegration of south africa in the world financial system and the liberalisation of financial operations such as foreign exchange transactions, have had an important effect on the amount of bank credit extension and the money supply. these conventional anchors of monetary policy also increased at unacceptably high rates over the past two years, partly because of structural changes, and partly because of normal pressures of demand increasing at a rate in excess of real income increases. for both the reserve bank and the individual banking institution the changing environment brings many challenges. banks operating in the new environment must be aware of the increased risk exposures that are inevitably associated with an extended process of change. conventional bank prudency becomes even more important in this situation than under more stable conditions. in many other countries a period of major financial sector reforms ended in major restructuring and rationalisation of the banking sector, often because of unsustainable over - expansion in individual institutions. the reserve bank ’ s concerns about the excessive increases in bank credit extension are not only for the effect it has on the total money supply, but also because of the inherent dangers of a concerted future major default in the servicing of the debt under less favourable macroeconomic conditions. the capacity of borrowers to meet future commitments of interest and debt repayment must not be over