Financial regulation is a topic that does not enjoy a widespread or thorough understanding. It is often regarded as obscure, arcane and yet another level of bureaucracy that has to be endured by the private sector. The importance of designing and maintaining an efficient and effective system to regulate financial markets, financial institutions and financial service providers lies at the very core of a nations economic wellbeing. The collapse of the banking system in many Southeast Asian countries during the closing years of the twentieth century and the economic hardships attendant on these events, are perhaps the most dramatic recent examples of how important the implementation of efficient and effective financial regulation is. The financial system in general, and the banking sector in particular, has experienced substantial structural changes since the 1980s. One of the main challenges for financial regulators has been to keep up with and adapt to these changes, which are often of an international nature. In South Africa the financial regulatory system has undergone enormous change during this period, including the transfer of responsibility for banking supervision from the Department of Finance (now known as the National Treasury) to the South African Reserve Bank in 1987, the establishment of the Financial Services Board in 1989 and the creation of the Policy Board for Financial Services and Regulation by Act of Parliament in 1993.. An extract from the Mission Statement of the Policy Board reads: The Board wishes to promote and maintain a safe and sound financial system which will be fair to investors, effective in supplying financial services to all, well structured and co-ordinated in terms of financial and regulatory matters.
Posted on: Mon, 08 Sep 2014 09:46:17 +0000
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