Featured Product

    SARB Issues Liquidity Stress Test Rules and Resolution Regime Proposal

    April 15, 2021

    SARB issued directive (D4/2021) to all banks, branches of foreign institutions, controlling companies, eligible institutions, and auditors of banks or controlling companies regarding the requirements and frequency of conducting externally facilitated liquidity stress simulations. A liquidity simulation focuses not only on the solvency of an individual bank but also on the collective behavior of institutions in response to a shock, with the aim to minimize systemic risk. SARB also proposed requirements for designated institutions to estimate, assess, and develop ex-ante funding arrangements to finance their liquidity needs and preserve the critical functions in a resolution; this consultation, which closes on May 03, 2021, also sets out arrangements to be put in place by SARB as a participant in the financial safety net.

    In yet another development, SARB published the revised the Code of Conduct and Operating Rules (Code) for Johannesburg Interbank Average Rate (JIBAR). The revisions came into effect on April 12, 2021. The reform agenda includes, among other things, strengthening the JIBAR governance framework as an interim measure while an alternative reference rate is being developed. The revisions made to the Code pertain to increase in pricing commitments of contributing banks, inclusion of operating rules regarding adjustment of pricing commitments in the event of abnormal market conditions, and incorporation of obligations of publishing agent of JIBAR reference rate data. As a further step to enhance the credibility of JIBAR, SARB will implement a post-trade disclosure framework for all JIBAR-linked money market transactions. It is envisaged that this framework will include the publication of post-trade primary and secondary transaction data as well as information pertaining to redemption profiles of bank negotiable certificates of deposit and floating-rate notes. The effective date of this disclosure framework will be announced at a later date.

     

    Related Links

    Comment Due Date: May 03, 2021 (Liquidity Directive)

    Effective Date: April 12, 2021 (JIBAR code)

    Keywords: Middle East and Africa, South Africa, Banking, Securities, Stress Testing, Systemic Risk, Resolution Framework, Interest Rate Benchmark, JIBAR, Liquidity Risk, D-SIBs, Benchmark Reforms, SARB

    Featured Experts
    Related Articles
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    News

    OSFI to Communicate Next Steps on Climate Risk Policy in Early 2022

    In a letter to the federally regulated financial institutions and pension plans, the Office of the Superintendent of Financial Institutions (OSFI) published a summary of the feedback received to the January 2021 discussion paper on ways to address climate risks.

    October 12, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7568