December 07, 2018

SARB issued a directive (D5/2018) on completion of return related to operational risk. The directive is applicable to all banks, controlling companies, branches of foreign institutions, eligible institutions, and auditors of banks or controlling companies.

The directive instructs the concerned entities to:

  • Change the frequency for completion and submission of the form BA 410 on operational risk from semi-annual to quarterly
  • Submit, to Prudential Authority, the first quarterly form BA 410 for the first quarter of 2019 (January 01, 2019 to March 31, 2019)
  • Complete and submit the relevant form BA 410, 20 working days after each relevant quarter on a bank solo basis and 30 working days after each relevant quarter on a bank consolidated and controlling company consolidated basis.

Regulation 34(2) sets out the purpose of the form BA 410 for a bank that adopted the advanced measurement approach for the calculation of the required amount of capital and reserve funds in respect of operational risk. In addition, as part of its supervisory processes, the Prudential Authority requested banks that adopted the standardized approach and the alternative standardized approach for the calculation of its required amount of capital and reserve funds in respect of operational risks to complete and submit the form BA 410. The purpose of the form BA 410 is to obtain selected information in respect of, among other things, a bank’s loss event types, gross losses recorded, and recovery of losses; this information is based on specified business lines and specified loss event types.

 

Related Link: Directive D5/2018

Keywords: Middle East and Africa, South Africa, Banking, Operational Risk, D5/2018, BA 410, Reporting, SARB

Related Articles
News

BIS Report Discusses Regulatory Issues Related to Big Techs in Finance

BIS has pre-released a chapter of the BIS Annual Economic Report; this chapter focuses on the risks and opportunities presented by large technology firms (big techs) in the financial services sector.

June 23, 2019 WebPage Regulatory News
News

IOSCO Report Examines Liquidity in Corporate Bond Markets

IOSCO published a report that examines the factors affecting liquidity, under stressed conditions, in the secondary corporate bond markets.

June 21, 2019 WebPage Regulatory News
News

FED Publishes Results of the 2019 Stress Tests for Banks

FED published a report presenting results of the Dodd-Frank Act Stress Test (DFAST) exercise for 2019.

June 21, 2019 WebPage Regulatory News
News

BCBS Report Examines Global Pillar 2 Supervisory Review Practices

BCBS published a report that examines the Pillar 2 supervisory review practices and approaches in Basel member jurisdictions.

June 21, 2019 WebPage Regulatory News
News

IASB Publishes Work Plan and Meeting Updates for June 2019

IASB published an updated work plan and a summary of its June meeting, which presents preliminary decisions of the Board.

June 21, 2019 WebPage Regulatory News
News

HKMA Publishes Banking Exposure Limits Code Under Banking Ordinance

HKMA issued a circular to all authorized institutions informing that the Banking (Exposure Limits) Code has been published in the Gazette on June 21, 2019.

June 21, 2019 WebPage Regulatory News
News

OSFI Proposes Guideline on Internal Model Oversight for Insurers

OSFI proposed the draft guideline E-25 on the internal model oversight framework for federally regulated property and casualty (P&C) insurance companies.

June 21, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Third Update for June 2019

Under the Single Rulebook question and answer (Q&A) updates for this week, EBA published one answer regarding the calculation of institution-specific countercyclical capital buffer rates.

June 21, 2019 WebPage Regulatory News
News

BCBS Publishes Summary of the Meeting in June 2019

BCBS published a summary of its June meeting in Basel.

June 20, 2019 WebPage Regulatory News
News

OCC Bulletin on Risk Management Guidance for Home Mortgage Lending

OCC published Bulletin 2019-28 on risk management guidance for higher-loan-to-value (LTV) lending activities in communities targeted for revitalization.

June 19, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3298