Featured Product

    SARB Publishes Multiple Regulatory Updates for Banks

    July 01, 2022

    The South African Reserve Bank (SARB) published directives on liquidity risk and risk-return as well as proposed directives on completion of operational risk return (Form BA 410) and certain reporting requirements for banks. Additionally, SARB published guidance notes on capitalization requirements, correspondent banking risk management practices, and business risk assessments.

    Below are the key highlights of these recent updates:

    • Directive on matters related to liquidity risk. The purpose of this Directive is to provide clarity in specified cases and to direct banks in respect of the liquidity coverage ratio and the net stable funding ratio requirements of foreign entities as well as requirements related to “liquid assets month to date average held” to be reported on the Form BA 325.
    • Directive on requirement to submit anti-money laundering and counter-financing of terrorism risk returns to the Prudential Authority of SARB on a periodic basis. The information required is both quantitative and qualitative in nature and requires supervised entities to maintain requisite data to be in a position to provide the details required. Banks and subsidiaries are to submit money laundering/terrorist financing/proliferation financing (ML/TF/PF) returns to the Prudential Authority quarterly. Completed ML/TF/PF risk returns must be submitted to the Prudential Authority by no later than April 30 (Quarter 1), July 31 (Quarter 2), October 31 (Quarter 3), and January 31 (Quarter 4). Mutual banks are required to submit ML/TF/PF returns twice a year covering quarter two and quarter four. This Directive is effective from the date of publication on the South African Reserve Bank website. SARB also published the frequently asked questions related to the Directive.
    • Proposed directive on completion and submission of the quarterly return related to operational risk (Form BA 410). The purpose of the Form BA 410 is to obtain selected information in respect of, among other things, the bank's loss event types, recorded gross losses, and recovery of losses, the information on which is based on specified business lines and specified loss event types. SARB is requesting comments by no later than July 29, 2022.
    • Proposed directive on reporting requirements in terms of Regulation 46 of the Regulations relating to Banks. Regulation 46 of the Regulations relating to Banks imposes certain reporting duties on the auditors of banks, controlling companies, and branches of foreign institutions. The purpose of this proposed Directive is to specify detailed references to the regulatory returns that have to be audited, reviewed, or concluded upon under a limited assurance framework in part fulfilment of the auditors’ respective reporting requirements in relation to Regulation 46 of the Regulations relating to Banks. This proposed Directive incorporates the changes brought about as a result of the finalization of the large exposures framework and the total loss absorbing capacity (TLAC) holdings standard’s requirements.
    • Guidance note on effective date for the capitalization requirements of the revised market risk and credit valuation adjustment (CVA) frameworks. The Prudential Authority proposed to implement outstanding regulatory reforms in South Africa as set out in the Guidance Note 4/2022, dated May 09, 2022. The proposed implementation date for the revised market risk and CVA frameworks is January 01, 2024. The outbreak of the COVID-19 pandemic had far-reaching consequences to date for financial markets and economies worldwide. Thus, certain countries confirmed the delayed implementation of the Basel III post-crisis reforms in their respective jurisdictions. Based on the aforementioned, the Prudential Authority will continue to monitor progress made by the respective members of the Basel Committee on Banking Supervision in respect of the implementation of the respective Basel III post-crisis reforms and will implement the capitalization requirements of the revised market risk and CVA frameworks at a later date.
    • Guidance note for matters related to the prevention of banks or controlling companies being used for any money laundering or other unlawful activity in respect of correspondent banking relationships. This guidance note sets out practices and guidelines to assist banks and controlling companies with anti-money laundering and counter terrorist financing risk management and compliance program requirements in terms of the Financial Intelligence Centre Act 38 of 2001.
    • Guidance note on supervisory guidelines for matters related to the prevention of banks or controlling companies being used for any money laundering or other unlawful activity. The purpose of this guidance note is to inform and bring to the attention of banks and controlling companies practices related to the formulation of appropriate business risk assessments which contribute to effective ML/TF and proliferation financing risk management.

     

    Related Links

     

    Keywords: Middle East And Africa, South Africa, Banking, Liquidity Risk, AML CFT, ML TF Risk, Operational Risk, Reporting, BA 410, Basel, Market Risk, FRTB, CVA Risk, TLAC, SARB

    Featured Experts
    Related Articles
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8699