Featured Product

    SARB Proposes Timeline for Implementation of Final Basel Reforms

    May 11, 2022

    The South African Reserve Bank (SARB) published Guidance Note 4/2022 on the proposed revised implementation dates for certain regulatory reforms under Basel III. SARB also proposed directive on the criteria for identifying simple, transparent, and comparable (STC) term and short-term securitizations.

    The guidance note on proposed implementation dates for Basel reforms is relevant for banks, branches of foreign institutions, controlling companies, eligible institutions and auditors of banks or controlling companies. The Prudential Authority is proposing to implement the outstanding regulatory reforms in South Africa on the dates set out in the guidance note. The proposed revised implementation dates for specified regulatory reforms is as follows:

    • January 01, 2023 for reforms on interest rate risk in the banking book (IRRBB) and January 01, 2024 for reforms on disclosure requirements related to IRRBB
    • October 01, 2022 for revisions to the securitization framework
    • January 01, 2024 for revised frameworks on standardized approach for credit risk, internal ratings based approach, operational risk, and revised exposure definition under leverage ratio framework
    • January 01, 2024 for minimum capital requirements for market risk and revised credit valuation adjustment framework
    • Implementation of 72.5% of output floor to be phased in over five years commencing from January 01, 2024 until January 01, 2028

    The proposed directive on securitizations directs banks, controlling companies, branches of foreign institutions, controlling companies, eligible institutions and auditors of banks or controlling companies that:

    • to qualify as a STC compliant securitizations, the term or short-term securitization structures must meet all the STC criteria as set out in Annexure A or Annexure B, as applicable
    • to qualify for the differentiated regulatory capital treatment, the term or short-term securitizations must also meet the additional criteria for capital purposes as set out in Annexure A or Annexure B, respectively

    The comment period on he proposed directive ended on May 16, 2022 while the proposed implementation date of the directive is July 01, 2022. 

     

    Related Links

     

    Keywords: Middle East And Africa, South Africa, Banking, Basel, Regulatory Capital, Market Risk, Credit Risk, IRRBB, Large Exposures, Output Floor, Implementation Timeline, Covid-19, Securitization, Leverage Ratio, STC Securitization, BCBS, SARB, Reporting, Headline

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582