Featured Product

    SARB Seeks Comments on Policies for Interest Rate Benchmarks

    June 19, 2020

    SARB is seeking public comments on a statement on methodology and policies governing the interest rate benchmarks that are administered by SARB. The statement describes technical specifications for the suite of interest rate benchmarks that are administered by SARB and provides an overview of the policies that govern these benchmarks. This suite comprises four new benchmarks and a reformed version of South African Benchmark Overnight Rate (SABOR), which is the existing overnight benchmark rate. SARB will embark on a data collection process to enable testing of the proposed benchmarks and their subsequent refinement. All stakeholders are invited to provide comments by September 19, 2020.

    The statement details the methodologies and policies that will be applied for the following suggested benchmarks:

    • South African Rand Interbank Overnight Rate (ZARIBOR)
    • South African Secured Overnight Financing Rate (ZASFR)
    • South African Rand Overnight Index Average (ZARONIA)
    • Term Wholesale Financial Corporate Fixed Deposit Benchmark Rate
    • Term Wholesale Non-financial Corporate Fixed Deposit Benchmark Rate

    The benchmark proposed as a replacement for SABOR is ZARONIA, which is an unsecured overnight rate. While the number of proposed interest rate benchmarks is not definitive, the ultimate outcome of reform will likely feature the coexistence of several interest rate benchmarks to fulfill different market and policy purposes. Additionally, SARB is the official administrator of the Johannesburg Interbank Average Rate (JIBAR). However, the policies specified in the statement do not apply to JIBAR, given an existing JIBAR Code of Conduct, Governance Process, and Operating Rules. In addition, efforts are underway to strengthen the JIBAR and add to its credibility as an interim solution, until an alternative reference rate is fully operational. Details of the work being undertaken in this regard will be published later this year.

    The suite of benchmarks stipulated above is based on confidential statistical information on daily money market transactions, in accordance with the reporting instructions specified by SARB. The reporting instructions include standards for transmission and accuracy of data. Reporting institutions are expected to comply with the reporting instructions determined by SARB. Additionally, SARB may conduct an ad hoc audit of the controls implemented by reporting institutions to assess their adequacy in ensuring that the data supplied to the SARB on a daily basis comply with the specified standards. Reporting institutions that are non-compliant will be required to implement corrective measures. However, an infringement procedure may be initiated against a reporting institution that repeatedly fails to adhere to the reporting standards.


    Related Links

    Comment Due Date: September 19, 2020

    Keywords: Middle East and Africa, South Africa, Banking, Securities, Interest Rate Benchmarks, Governance, IBOR Reform, ZARIBOR, ZASFR, ZARONIA, SABOR, SARB

    Related Articles

    EBA Launches Stress Tests for Banks, Issues Other Updates

    The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.

    January 31, 2023 WebPage Regulatory 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

    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

    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

    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

    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

    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

    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

    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

    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
    RESULTS 1 - 10 OF 8700