BoB, NBFIRA form joint 'response unit'
Mbongeni Mguni | Tuesday February 27, 2018 16:24
This morning, central bank governor, Moses Pelaelo said the watchdog, to be known as the Financial Stability Council, would seek to close the regulatory and monitoring gaps between the BoB and NBFIRA.
“The high-level Council will comprise a primary focus on coordinated macro-prudential monitoring, analysis and response with respect to any financial system imbalances or distress,” he said when launching the 2018 Monetary Policy Statement.
“This recognises the shared responsibilities for regulation and supervision of the financial system, as well as for the design and implementation of financial sector legislation, policies, regulatory and oversight frameworks.”
Pelaelo said while the financial services sector was well regulated at micro level by both the BoB and NBFIRA, there were various interconnected relationships and activities as well as common and transferable risks.
“It is clear that the linkages between banks, non-bank financial institutions and financial exposure by businesses and households are intricate and symbiotic and, therefore, require a comprehensive oversight mechanism for the safety and soundness, as well as, the integrity of the financial system,” he said.
Pelaelo revealed that consultations with the Finance Ministry towards the Council’s establishment were in progress.