SARB to Revise Implementation Dates for Final Basel Reforms
The South African Reserve Bank (SARB) published a guidance note (4/2021) on the proposed revised implementation dates for certain regulatory reforms under Basel III. The guidance note is relevant for banks, controlling companies, branches of foreign institutions, eligible institutions, and auditors of banks or controlling companies. The Prudential Authority is proposing to implement the outstanding regulatory reforms in South Africa on the dates set out in the guidance note. The implementation period spans January 01, 2022 to January 01, 2028, with the output floor requirements being gradually phased-in.
The proposed revised implementation dates for specified regulatory reforms is as follows:
- January 01, 2022 for reforms on large exposures framework and total loss-absorbing capacity (TLAC) holdings
- June 01, 2022 for reforms on interest rate risk in the banking book (IRRBB) and related disclosure requirements
- July 01, 2022 for revisions to the securitization framework
- January 01, 2023 for revised frameworks on standardized approach for credit risk, internal ratings based approach, operational risk, and revised exposure definition under leverage ratio framework.
- January 01, 2024 for minimum capital requirements for market risk and revised credit valuation adjustment framework
- Implementation of 72.5% of output floor to be phased in over five years commencing from January 01, 2023 until January 01, 2028
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Keywords: Middle East and Africa, South Africa, Banking, Regulatory Capital, Basel, Market Risk, Credit Risk, IRRBB, Large Exposures, Output Floor, Implementation Timeline, Operational Risk, Leverage Ratio, COVID-19, Securitization, BCBS, SARB
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