NEWS ANALYSIS: How will Zuma handle a bill that boosts the Reserve Bank?
Twin Peaks will introduce a prudential authority to regulate the safety and soundness of financial institutions, writes Moyagabo Maake
With the Reserve Bank’s mandate of protecting the currency — which it does through inflation targeting — a matter of debate in political and economic quarters, one wonders whether the Bank will be allowed to officially take on its second mandate: financial stability. The Financial Sector Regulation Bill, also known as Twin Peaks, finally reached the president’s desk for signature in June after a long and painful journey through Parliament. Twin Peaks would introduce a prudential authority — housed within the Reserve Bank — to regulate the safety and soundness of financial institutions and convert the Financial Services Board’s role to that of market conduct watchdog, shielding consumers from abuse by providers. Reserve Bank governor Lesetja Kganyago is quite anxious for the bill to be implemented as the Bank’s regulatory powers are quite limited compared with its peers around the world. "The processes to promulgate this bill have taken longer than expected," he said in the Bank’s an...
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