University of Cape Town. Picture: SUNDAY TIMES
University of Cape Town. Picture: SUNDAY TIMES

The SA Reserve Bank has entered into partnership with the University of Cape Town (UCT) to host the research chair in financial stability studies.

Professor Co-Pierre Georg will chair the portfolio, which will be housed within the African Institute of Financial Markets and Risk Management, an interdisciplinary research institute within UCT’s commerce faculty. The faculty focuses on risk management, financial mathematics and financial technology.

The Bank said in a statement on Tuesday that its decision to establish a chair in financial stability studies was aligned with the expansion of its price-stability mandate to include a financial stability objective and responsibility.

“SA’s academic offering in this area is limited and research on financial stability is still in its infancy compared to monetary policy. Expanding capacity and an enhanced understanding of financial stability in the country is crucial to the execution of the SA Reserve Bank’s financial stability mandate,” the statement said

The chair will develop research relevant to the Bank on managing regulatory complexity, financial interconnectedness, computational models, the regulation of blockchain technologies and crypto-assets.

The funding is intended to support not only the appointment of the chair, but also teaching and research on financial-stability-related issues and supporting Master’s and Doctoral students and post-doctoral research fellows in the area of financial stability. UCT will also introduce a Master’s course on financial stability analysis.

In addition to the Bank chair in financial stability studies at the UCT, the Bank also supports a chair in monetary policy, based at the University of Pretoria, and a chair in journalism at Rhodes University.

The Bank has also established research fellowships in financial stability with local and international universities and supports postgraduate financial stability research through a student-grant programme.

ensorl@businesslive.co.za