Featured Product

    SARB Proposes Implementation Dates for Certain Basel III Regulations

    November 25, 2019

    SARB published a guidance note (6/2019) on the proposed implementation dates in respect of certain regulatory reforms under Basel III. The guidance note has been issued to all banks, controlling companies, branches of foreign institutions, and auditors of banks or controlling companies. Based on, among others, industry comments, quantitative impact studies, and progress by the BCBS member jurisdictions to implement the reforms and matters related to implementation complexity, the Prudential Authority is proposing to implement the outstanding regulatory reforms in South Africa on the dates set out in the guidance notes.

    On May 03, 2019, the Prudential Authority proposed a directive related to the second set in a series of proposed amendments to the Regulations relating to Banks. The second set in the series of proposed amendments incorporates the following BCBS frameworks for implementation:

    • The standardized approach for measuring counterparty credit risk exposures (SA-CCR)
    • A capital standard for bank exposures to central counterparties (CCPs)
    • Capital requirements for banks’ equity investments in funds

    Based on the comments and proposal received and the outcome of the subsequent discussions held, it has been decided to revise the proposed implementation dates in South Africa for specified regulatory reforms as follows:

    • Capital Requirements for Equity Investments in Funds
    • Capital Requirements for Bank Exposures to CCPs
    • SA-CCR

    October 01, 2020

    Interest Rate Risk in the Banking Book (IRRBB)

    June 01, 2022

    • Minimum Capital Requirements for Market Risk
    • Revised Standardized Approach for Credit Risk Framework
    • Revised Internal Ratings Based Approach Framework
    • Revised Credit Valuation Adjustment Framework
    • Revised Operational Risk Framework
    • Leverage Ratio—Revised Exposure Definition

    January 01, 2023

    Output Floor

    January 01, 2022: 50%

    January 01, 2023: 55%

    January 01, 2024: 60%

    January 01, 2025: 65%

    January 01, 2026: 70%

    January 01, 2027: 72.5%

    • Revisions to the Securitization Framework
    • Total Loss Absorbing Capacity Holdings
    • Large Exposures Framework

    January 01, 2021

     

    Amendments to Regulations are promulgated by Minister of Finance in terms of Section 90 of the Banks Act 1990, for implementation, only when the National Treasury and the Minister of Finance, at a minimum, have concluded their own respective processes related to, for example, the consideration of any relevant proposed amendments to legislation. Additionally, amendments to the regulations are promulgated, for implementation, when the National Treasury and the Minister of Finance are satisfied that a sufficiently robust consultation process has been followed in respect of the said proposed amendments to legislation.

     

    Related Link: Guidance Note

    Keywords: Middle East and Africa, South Africa, Banking, Capital Requirements, SA-CCR, Basel III, Implementation Dates, Market Risk, Credit Risk, IRRBB, Large Exposures, Output Floor, BCBS, SARB

    Featured Experts
    Related Articles
    News

    BIS Quarterly Review Discusses Developments in Fintech and ESG Space

    BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.

    September 20, 2021 WebPage Regulatory News
    News

    BCBS to Consult on Supervisory Practices for Climate Risks by Year-End

    The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards

    September 20, 2021 WebPage Regulatory News
    News

    OCC Identifies Operational Risk Deficiencies in MUFG Union Bank

    The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.

    September 20, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write Down and Conversion Powers

    The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.

    September 17, 2021 WebPage Regulatory News
    News

    ECB to Consider Climate Risks When Reviewing Collateral Framework

    In a response to the questions posed by a member of the European Parliament, the President Christine Lagarde highlighted the commitment of the European Central Bank (ECB) to an ambitious climate-related action plan along with a roadmap, which was published in July 2021.

    September 17, 2021 WebPage Regulatory News
    News

    SRB Provides Update on Approach to Prior Permissions Regime

    The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.

    September 16, 2021 WebPage Regulatory News
    News

    APRA Issues Further Guidance on Application of Securitization Standard

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.

    September 16, 2021 WebPage Regulatory News
    News

    ACPR Publishes Corrective Version of RUBA Taxonomy

    The French Prudential Control and Resolution Authority (ACPR) published the corrective version of the RUBA taxonomy Version 1.0.1, which will come into force from the decree of January 31, 2022.

    September 15, 2021 WebPage Regulatory News
    News

    Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics

    The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.

    September 15, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7487