SARB Issues Directive on Pillar 3 Disclosure Requirements Framework
SARB issued a directive (D1/2019) on matters related to Pillar 3 disclosure requirements framework. D1/2019 provides directions related to general and specific disclosure requirements. The purpose of the directive is to consolidate the disclosure requirements set out in the revised Pillar 3 framework and the consolidated and enhanced framework, which were issued by BCBS in January 2015 and in March 2017 respectively, to create a single point of reference for the disclosure requirements.
The directive also aims to direct banks to comply with the requirements specified in the directive to ensure that the internationally agreed Pillar 3 disclosure framework is fully implemented. Annexure A to the directive includes a list of tables and templates specifying their formats and frequency of disclosure. Annexure B to the directive includes template CC1 on composition of regulatory capital. The template CC1 has been expanded to include an additional column to provide linkages with the reconciliation disclosures in template CC2 and additional rows for the total loss-absorbing capacity (TLAC) holdings standard. The template is mandatory for all banks at the consolidated level and banks must disclose, on a semi-annual basis, their composition of regulatory capital using template CC1. It must be completed from the earlier of—
- when banks have fully applied the Basel III deductions in advance of January 01, 2018 (that is, before the end of transition period); OR
- the end of transition period
The directive D1/2019 replaces directives 11/2015 and 1/2018. The directive is applicable to all banks, controlling companies, branches of foreign institutions, eligible institutions, and auditors of banks or controlling companies.
Related Link: Directive and Annexures
Keywords: Middle East and Africa, South Africa, Banking, Pillar 3, D1/2019, Reporting, Regulatory Capital, Basel III, TLAC, Disclosures, BCBS, SARB
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
EC Amends Regulation Establishing the List of Critical BenchmarksRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
