A new macroprudential policy framework for South Africa

The South African Reserve Bank has published A new macroprudential policy framework for South Africa for discussion. "The discussion paper outlines the SARB’s proposed approach to executing its financial stability policy mandate. It discusses the institutional structure, the objectives of macroprudential policy, and the decision-making process to be applied in the process of activating macroprudential instruments. It also describes a range of possible instruments to be used in mitigating systemic risk."

"Macroprudential policy has two broad aims that are not mutually exclusive: first strengthening the resilience of the financial system to economic downturns and other adverse aggregate shocks; and second, leaning against the financial cycle to limit the accumulation of financial risks and the likelihood or the extent of a financial crisis."