Featured Product

    SARB Updates Requirements for BA Returns for Banks

    March 12, 2021

    SARB published a Directive (D1/2021) on additional requirements for domestic systemically important banks or D-SIBs; these requirements relate to the bi-annual submission of credit-related statutory BA returns (BA 200 and BA 210), based on group consolidated information. Another recent SARB Directive (D3/2021) specifies 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. Regulation 46 imposes certain reporting duties on the auditors of banks, controlling companies, and branches of foreign institutions (collectively banks).

    D1/2021 on D-SIB requirements replaces Banks Act Directive 2/2016, dated 13 April 2016, and specifies the following requirements with regard to submission of the credit-related BA forms: 

    • The data forms be submitted six-monthly, based on a calendar year (that is, end-June and end-December data of each year) within 30 business days, immediately following the period to which the return relates.
    • Directives and interpretations for the completion of the statutory forms BA 200 and BA 210 are outlined in regulations 23 and 24 of the Regulations relating to Banks, respectively. 
    • The certification and rendition of these returns shall comply with regulation 4 of the Regulations. 
    • In line with regulation 6 of the Regulations, the returns shall be submitted electronically by using the data sets "T8" and "S4." These datasets shall include the statutory forms BA 200 and BA 210 on a controlling company consolidated level and a bank consolidated level respectively.
    • All line items on the consolidated statutory forms BA 200 and BA 210 are mandatory. The Directive presents a table that outlines which line items are not mandatory in the submission of the consolidated credit returns.

    D3/2021 on reporting requirements directs auditors of banks to perform an audit, review, or limited assurance engagement on the respective regulatory returns specified in regulation 46(6) of the Regulations, in accordance with the detailed audit matrix provided in Annexure 1 for reports submitted to the Prudential Authority in relation to engagements for financial years ended on or after February 28, 2021, for the purposes of reporting in terms of Parts A to E or Parts A to D of the illustrative regulatory reports in relation to South African and foreign operations, respectively. The directive informs that, to date, the aforementioned parts of the illustrative regulatory reports contained the detailed breakdown of the sections of the various regulatory returns listed in regulation 46(6) of the Regulations. However, in light of the ongoing regulatory changes to align the Regulations with Basel III post-crisis reforms as well as changes required as part of ongoing regulatory reviews, the detailed references to the regulatory returns from Parts A to E and Parts A to D of the illustrative regulatory reports have been removed to limit the frequency of changes to these reports. The returns listed in Annexure 1 include BA 100, 110, 120, 130, 200, 210, 220, 300, 310, 320, 325, 330, 340, 350, 400. 410, 500, 600, 610, and 700. Regulation 46(1) of the Regulations requires the auditor of a bank to report annually, within 120 days of the financial year-end, on the bank’s financial position and the results of its operations, as reflected in the regulatory returns specified in regulation 46(6) of the Regulations.

     

    Related Links

    Keywords: Middle East and Africa, South Africa, Banking, D-SIBs, Credit Risk, Basel, Reporting, BA Returns, SARB

    Featured Experts
    Related Articles
    News

    EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis

    The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.

    November 28, 2023 WebPage Regulatory News
    News

    EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules

    The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.

    October 31, 2023 WebPage Regulatory News
    News

    BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks

    As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.

    October 19, 2023 WebPage Regulatory News
    News

    BCBS and EBA Publish Results of Basel III Monitoring Exercise

    The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.

    October 18, 2023 WebPage Regulatory News
    News

    PRA Updates Timeline for Final Basel III Rules, Issues Other Updates

    The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.

    October 18, 2023 WebPage Regulatory News
    News

    US Treasury Sets Out Principles for Net-Zero Financing

    The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.

    October 17, 2023 WebPage Regulatory News
    News

    EC Launches Survey on G7 Principles on Generative AI

    The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.

    October 14, 2023 WebPage Regulatory News
    News

    ISSB Sustainability Standards Expected to Become Global Baseline

    The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.

    September 18, 2023 WebPage Regulatory News
    News

    IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance

    Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.

    September 18, 2023 WebPage Regulatory News
    News

    BCBS Assesses NSFR and Large Exposures Rules in US

    The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.

    September 14, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8938