Featured Product

    SARB on Group Structure Reporting Requirements for Resolution Planning

    September 30, 2020

    SARB published a discussion paper that sets out criteria to identify resolution groups. In other words, the criteria is to identify which entities in a financial conglomerate should be treated as part of a designated institution and which entities could be excluded without affecting the ability of SARB to conduct an orderly resolution. These criteria will also inform future reporting requirements of designated institutions on their group structures, for resolution planning purposes. SARB is requesting comments on the paper by November 30, 2020.

    The development of a feasible resolution plan is dependent on a good understanding of the group structure and the identification of relevant entities in the group that will play an important role to achieve an orderly resolution. The existing regulatory requirements for the reporting of group structures are not suitable for the identification of resolution groups. For example, the "Regulations relating to Banks" require banks to submit a group structure that identifies all interest held as at March 31 and September 30 of each year, or in the event of any major change in the group structure. This regulation potentially results in very detailed and lengthy group structures, without sufficient background information to identify resolution groups. A similar situation may arise with the reporting of financial conglomerates to which non-bank systemically important financial institutions belong. In order to identify resolution groups and group entities that should be excluded by the Governor from the definition of designated institutions, more specific requirements on the reporting of group structures will be placed on designated institution.

    The discussion paper sets out the proposed entities that should be reported to SARB in order to facilitate the identification of resolution groups. These entities include banks, non-bank systemically important financial institutions, payment system operators and participants of a systemically important payment system, holding companies, market infrastructures, and resolution support entities. For certain reportable entities, SARB will also require information about their ownership structures at a minimum level of detail. An understanding of the ownership structure is important when identifying applicable resolution actions, for example, to assess contagion effects if shareholders and creditors are to be bailed in. The format in which this information has to be reported is illustrated in Annexure A of the paper, which provides an illustration of a hypothetical group structure, as well as Annexure B, which sets out the relevant reporting template.

     

    Related Links

    Comment Due Date: November 30, 2020

    Keywords: Middle East and Africa, South Africa, Banking, Reporting, Resolution Framework, Resolution Planning, SARB

    Featured Experts
    Related Articles
    News

    FED Proposes to Extend Data Collection Under Stress Testing Guidance

    FED proposed three-year extension, without revision, of the information collection FR 4202, titled "Recordkeeping Provisions Associated with Stress Testing Guidance."

    March 08, 2021 WebPage Regulatory News
    News

    FCA Proposes Updates to Guidance on Mortgage Repossessions

    FCA updated the draft guidance for firms to ensure that mortgage customers whose homes may be repossessed are treated fairly and appropriately, particularly where there are risks of harm to customers who are vulnerable as a result of the COVID-19 pandemic.

    March 05, 2021 WebPage Regulatory News
    News

    FCA Announces Cessation Timeline for Certain LIBOR Benchmark Settings

    FCA issued a statement on the cessation or loss of representativeness of the 35 LIBOR benchmark settings published by ICE Benchmark Administration or IBA.

    March 05, 2021 WebPage Regulatory News
    News

    EBA Publishes Reporting and Disclosures Framework for Investment Firms

    EBA published a package that includes the final draft implementing technical standards on supervisory reporting and disclosures of investment firms.

    March 05, 2021 WebPage Regulatory News
    News

    BIS Examines Use of Big Data and Machine Learning at Central Banks

    BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.

    March 04, 2021 WebPage Regulatory News
    News

    APRA Finalizes Reporting Standard for Operational Risk Requirements

    APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.

    March 03, 2021 WebPage Regulatory News
    News

    ECB Publishes Guide for Determining Penalties for Regulatory Breaches

    ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.

    March 02, 2021 WebPage Regulatory News
    News

    MAS Sets Out Good Practices to Manage Operational Risks Amid COVID

    MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.

    March 02, 2021 WebPage Regulatory News
    News

    ACPR Announces New Data Collection Application for Banks and Insurers

    ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.

    March 02, 2021 WebPage Regulatory News
    News

    BCB Maintains CCyB at 0%, Initiates First Cycle of Regulatory Sandbox

    BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.

    March 02, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6659