This initiative further strengthens the relationship between the two central banks and is part of the UK’s broader efforts to support economic prosperity in South Africa, which also includes sponsoring the recently published IFC study: Creating Markets in South Africa: Country Private Sector Diagnostic.
The programme, financed by the UK government’s Prosperity Fund delivered 7 successful workshops during its pilot phase. Under the broad umbrella of financial stability, these included:
(a) developing tools to better measure systemic risk and vulnerabilities in the financial sector
(b) developing prudential policies for the insurance sector
(c) dealing with volatile capital flows considering the interplay between macro-prudential and monetary policy
(d) best practice in resolving failing banks that have cross-border operations
Confirming the programme’s continuation, Governors Carney and Kganyago exchanged letters expressing their satisfaction with the proposed co-operation under the second stage of the relationship between the SARB and the BoE.
This will consist of both bilateral events and others that support SARB in its role as a regional leader, including on cross-border banking stability and central bank communication.