: deepening capital markets : the case of south africa – 7 november 2006 3. 6 the monetary and fiscal authorities in south africa pursue sound policies which promote stability and provide a solid platform for growth and development. south africa has adopted an inflation - targeting framework for monetary policy, and the south african reserve bank has maintained inflation within the target range of 3 to 6 per cent over the past 3 years. furthermore, the maintenance of low and stable inflation is a goal shared by central banks in the southern african development community ( sadc ). to this end the central banks of sadc are far advanced in developing model legislation which provides for the pursuit of low inflation by central banks, an adequate degree of independence for the central bank, and limits on central bank lending to government. conclusion central bankers, and many who work in central banks often hear : they do not always listen. but that should be of little concern to those here present. those who are here, in the main, are not central bankers. they will likely hear and they may listen. for this reason, i have chosen to say nothing about the problems which, undoubtedly, exist in our respective regions. hearing and listening are, after all, some of the principal reasons for this dialogue : for it is the honest visitor who will innocently ask about the significance of the tick on your back, it tick there be – when you have chosen to behave as if there is not tick, least of all on your back. and it is the honest host who will respond appropriately. they said, who were wise, “ lentswe le tsela noka etletse ”. in free translation, “ the voice fords fluidly ee ’ n rivers full ”. let not the rivers or oceans separate us, for voices we have all. we also, unlike the ancients, have the possibility to invest in infrastructure to enhance communication. i thank you for your attention. references • imf. 2006. september 2006 factsheet on debt relief under the heavily indebted poor countries ( hipc ) initiative. http : / / www. imf. org / external / np / exr / facts / hipc. htm. site accessed on 1 november 2006. • mboweni “ deepening capital markets : the case of south africa ”, 7 november 2006 • mboweni : “ a historical review and a look at the future prospects of the national payment system in south africa, 15 november 2006. • nepad

seldom designed, built and functioning in a day. the sarb, national treasury and the financial services board are engaged in thorough preparation and look forward to robust implementation of the new regulatory architecture. we trust that you, the practitioners and other stakeholders involved in our markets, will also be reaping the benefits in the not - too distant future. 5. the g20 agenda for financial regulatory reform in 2014 at the time of the brisbane g20 summit in november 2014, four core financial reform deliverables will be assessed which ties in with the fsb focus for the upcoming year on “ completing the job ”. the policy priorities needed to “ complete the job ” are : building the resilience of financial institutions ; ending too - big - to - fail ; transforming shadow banking ; and making derivatives markets safer. the fsb will also undertake a review of its governance structures and submit a final report to the g - 20 leaders summit. i will address each of these policy priorities separately, without going into too much detail, in particular in those areas i have already touched on such as the otc derivatives market. building the resilience of financial institutions : the outstanding reform issues revolve around the basle iii capital framework and include the finalisation of the lcr, the nsfr, capital requirements for the trading book and addressing the various methodologies followed to determine risk weighted assets. south africa fully implemented the risk - based capital component of the basel iii framework on 1 january 2013, with the exception that the capital charge for credit valuation adjustment ( cva ) risk on banks ’ exposures to zar - denominated otc derivatives and non - zar otc derivatives transacted purely between domestic entities, was zero - rated for 2013, which exemption has been extended to 2014. the cva exemptions have been a necessity because of the lack of a domestic ccp and a similar carve out in larger jurisdictions like europe. another focus area is to improve the comparability across banks of the risk weights that they use in their internal risk models. a high degree of convergence and harmonisation should be reached so as to level the playing fields. ending too - big - to - fail ( tbtf ) : only a few jurisdictions ( most notably the us and the eu ) have made the necessary legislative reforms to implement the key attributes of effective resolution regimes, which all g20 jurisdictions are expected to fully implement in substance and scope by the end of 2015. bis central bankers