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

    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
    News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News
    News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697