attractiveness of these instruments in their portfolios. however, there are early signs of a more active secondary market beginning to resurface as turnover has increased in the past year. 4. conclusion the stable inflation environment means that the fixed income structure of bonds has become relatively more attractive to investors with risk profiles that demand a steady real rate of return. also, economic growth has been more robust in recent years amid heightened investor optimism about the country's future prospects. improved economic fundamentals translate into enhanced growth prospects for south african corporates and a concomitant need for long - term debt financing. the development of this sector of the bond market offers borrowers in the private sector access to long - term finance from the capital markets. i am aware that some of south africa ’ s important corporates are here to participate in this conference. we look forward with keen interest to your contributions to the growth of this sector of the market. i wish you well during your deliberations. thank you for your attention.

to more explicitly include financial stability. following the global financial crisis, it became clear that price stability is a necessary, but insufficient condition for financial stability and it has now become a more explicit mandate of central banks in many countries. while the price stability mandate of the sarb is clearly defined and measureable, its mandate for financial stability is much broader and is a shared responsibility with other stakeholders. national treasury published a policy document in february 2011 titled a safer financial sector to serve south africa better, which outlined government ’ s decision to shift to a twin peaks model of financial sector regulation. the twin peaks model of financial sector regulation represents a move away from a fragmented regulatory approach which was based on the institution or activity towards a regulatory and supervision model based on objectives. it is envisaged that, once fully implemented, the twin peaks system of regulation will focus on a more harmonised system of licensing, supervision, enforcement, customer complaints, an appeal and review mechanism, and consumer advice and education. national treasury published the second draft of the financial sector regulation bill in december 2014. this bill proposes to confer upon the bank the responsibility for financial stability and the oversight of market infrastructure and payment systems. it further proposes the establishment of two regulators, namely a prudential authority within the bank and a new financial sector conduct authority. the prudential authority would supervise the safety and soundness of banks, insurance companies, and other financial institutions, while the market conduct authority would supervise the way in which financial services firms conduct themselves and treat their customers. this reform forms part of the current broader overhaul of the global regulatory system which aims to address the too - big - to - fail problem of systemically important financial institutions, building resilient financial institutions, reducing the opacity of over - the - counter derivatives markets, mitigating the impact of shadow banking on financial stability, enhancing financial benchmark transparency, and promoting the convergence of accounting standards. within each of these themes there are a number of regulatory initiatives, such as the regulation of systemically important financial institutions under the too - big - to - fail problem, basel iii and proposals for a basic capital requirement for insurers to strengthen the theme of building resilient financial institutions. the bank ’ s main activities in the financial stability arena currently include developing and implementing recovery and resolution plans for systemically important financial institutions, introducing a macroprudential toolkit of policy instruments to contain risks associated with imbalances in the financial system, and