Case Study 6, Question 3

South African Banking Regulatory Framework

The banking environment in the country is properly regulated to warrant oversight of banking
operations. Regulations that impacts financial institutions, amongst others are:

 Banks Act;

 National Payment System Act;

 Financial Intelligence Centre Act;

 Financial Intermediary and Advisory Services Act;

 National Credit Act;

 Consumer Protection Act;

 Home Loan and Mortgage Disclosure Act; and

 Competition Act.

The significant after effects of unpleasant events of the 2008 global financial crisis saw many policies and
approaches introduced through various gatekeepers to deal with essential flaws exposed during
financial crisis. The amendments include Basel requirements that prompts banking sector maintain
higher capital including adequate liquid assets to manage risk. The aftermath of global economic
meltdown forced banking sector redeploy approches or amend value costing as results of the
augmented capital and liquidity level requirements.

Consequently, National Treasury proposed a framework to warrant protected environment. Under Twin
Peaks framework, SARB is tasked with oversight relating to steadiness of banks and other financial
providers. On other hand, Financial Sector Conduct Authority is taked with market conduct oversight