Featured Product

    SARB Consults on Deposit Insurance Funding Model for South Africa

    September 01, 2020

    SARB published a discussion paper that describes funding model for the proposed deposit insurance scheme for South Africa. The paper also addresses the implications for banks in terms of the contributions they would be required to make to the deposit insurance fund, which will be established in terms of the Financial Sector Laws Amendment Bill (FSLAB). Once the FSLAB is promulgated, the provisions of the FSLAB, together with these proposals, will form the basis of secondary legislation. The comment period for this proposal ends on October 16, 2020.

    SARB had published an initial discussion paper on designing a deposit insurance scheme for South Africa in May 2017. Significant consultations with banks, through the Banking Association of South Africa (BASA), resulted in a more cost-effective model of funding. Although the funding model has been informally shared with banks, this discussion paper provides banks with the opportunity to formally comment on the revised funding model. The discussion paper explains

    • the tiered funding model and emergency funding that will be available to the future Corporation for Deposit Insurance or CoDI
    • how the governance and administration will affect the operational costs of the Corporation for Deposit Insurance and the levy paid by members
    • the processes for the calculation and payment of members’ financial contributions to the deposit insurance fund
    • how instances of potential non-compliance by banks will be dealt with

    The policy proposals take into account country-specific characteristics and applicable international standards and they are aimed at contributing to the creation of a deposit insurance scheme that would enhance the financial safety net to optimally serve the needs of the South African financial system. The proposed funding model has been subject to a peer review by FSB and the International Association for Deposit Insurers (IADI), in addition to a Financial Sector Assessment Program (FSAP) review by IMF and World Bank. SARB also expects to publish, in the future, a discussion paper covering the use of the deposit insurance fund for payout and resolution support.

     

    Related Links

    Comment Due Date: October 16, 2020

    Keywords: Middle East and Africa, South Africa, Banking, FSLAB, Deposit Insurance Fund, CoDI, SARB

    Related Articles
    News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News
    News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News
    News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News
    News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News
    News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News
    News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News
    News

    DNB Publishes Multiple Reporting Updates for Banks

    DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.

    February 28, 2023 WebPage Regulatory News
    News

    NBB Sets Out Climate Risk Expectations, Issues Reporting Updates

    The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting

    February 24, 2023 WebPage Regulatory News
    News

    EBA Updates Address Securitization Standards and DGS Guidelines

    The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.

    February 21, 2023 WebPage Regulatory News
    News

    FSB Publishes Letter to G20, Sets Out Work Priorities for 2023

    The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023

    February 20, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8793