Featured Product

    SARB Consults on Deposit Insurance Funding Model for South Africa

    September 01, 2020

    SARB published a discussion paper that describes funding model for the proposed deposit insurance scheme for South Africa. The paper also addresses the implications for banks in terms of the contributions they would be required to make to the deposit insurance fund, which will be established in terms of the Financial Sector Laws Amendment Bill (FSLAB). Once the FSLAB is promulgated, the provisions of the FSLAB, together with these proposals, will form the basis of secondary legislation. The comment period for this proposal ends on October 16, 2020.

    SARB had published an initial discussion paper on designing a deposit insurance scheme for South Africa in May 2017. Significant consultations with banks, through the Banking Association of South Africa (BASA), resulted in a more cost-effective model of funding. Although the funding model has been informally shared with banks, this discussion paper provides banks with the opportunity to formally comment on the revised funding model. The discussion paper explains

    • the tiered funding model and emergency funding that will be available to the future Corporation for Deposit Insurance or CoDI
    • how the governance and administration will affect the operational costs of the Corporation for Deposit Insurance and the levy paid by members
    • the processes for the calculation and payment of members’ financial contributions to the deposit insurance fund
    • how instances of potential non-compliance by banks will be dealt with

    The policy proposals take into account country-specific characteristics and applicable international standards and they are aimed at contributing to the creation of a deposit insurance scheme that would enhance the financial safety net to optimally serve the needs of the South African financial system. The proposed funding model has been subject to a peer review by FSB and the International Association for Deposit Insurers (IADI), in addition to a Financial Sector Assessment Program (FSAP) review by IMF and World Bank. SARB also expects to publish, in the future, a discussion paper covering the use of the deposit insurance fund for payout and resolution support.

     

    Related Links

    Comment Due Date: October 16, 2020

    Keywords: Middle East and Africa, South Africa, Banking, FSLAB, Deposit Insurance Fund, CoDI, SARB

    Related Articles
    News

    BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance

    The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.

    January 16, 2022 WebPage Regulatory News
    News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News
    News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News
    News

    MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.

    January 13, 2022 WebPage Regulatory News
    News

    HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets

    The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.

    January 12, 2022 WebPage Regulatory News
    News

    FCA Registers Securitization Repositories; PRA Issues 2022 Priorities

    The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.

    January 12, 2022 WebPage Regulatory News
    News

    EC Regulation Sets Out Methods for Measuring K-Factors Under IFR

    The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.

    January 11, 2022 WebPage Regulatory News
    News

    BIS Studies How Platform Models Impact Financial Stability & Inclusion

    The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.

    January 10, 2022 WebPage Regulatory News
    News

    CBE Issues Additional Measures to Ease Disruptions from Pandemic

    The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.

    January 10, 2022 WebPage Regulatory News
    News

    ESAs Publish List of Financial Conglomerates for 2021

    The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.

    January 07, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7868