Annual Report 2009Bank Supervision Department The Bank Supervision Department (the Department) executes the functions assigned to the Registrar of Banks in terms of the Banks Act, 1990 (Act No. 94 of 1990 – the Act) and its mission is: “To promote the soundness of the banking system through the effective and efficientapplication of international regulatory and supervisory standards.” The Department’s Annual Report for the calendar year ended 31 December 2009 is issued in terms of section 10 of the Act and section 8 of the Mutual Banks Act, 1993 (Act No. 124 of 1993). The report presents an overview of the objectives and activities of the Department, with particualr reference to the period 1 January 2009 to 31 December 2009. The year under review again brought with it a challenging operating environment for the banking sector, characterised by a cyclical downturn in domestic economic conditions which were worsened by the aftermath of the international financial market crisis. However, notwithstanding these difficult circumstances, the banking system remained stable and profitable, and capital levels were adequate throughout 2009.  From an international regulatory and supervisory perspective, standard-setting bodies, such as the Financial Stability Board and the Basel Committee on Banking Supervision, continued their respective processes of developing and issuing guidance and standards to strengthen the resilience of the financial sector in general and the banking sector in particular. The Department, as always, closely monitored and considered developments on the international regulatory and supervisory fronts in an ongoing effort to promote the soundness of the domestic banking sector through the effective and efficient application of international regulatory and supervisory standards. See attachment for the detailed report, as well as an executive summary thereof.   Contact person:Ms Sam Henkeman+27 12 313 4669Sam.Henkeman@resbank.co.za  ​