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
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