Featured Product

    SARB on Group Structure Reporting Requirements for Resolution Planning

    September 30, 2020

    SARB published a discussion paper that sets out criteria to identify resolution groups. In other words, the criteria is to identify which entities in a financial conglomerate should be treated as part of a designated institution and which entities could be excluded without affecting the ability of SARB to conduct an orderly resolution. These criteria will also inform future reporting requirements of designated institutions on their group structures, for resolution planning purposes. SARB is requesting comments on the paper by November 30, 2020.

    The development of a feasible resolution plan is dependent on a good understanding of the group structure and the identification of relevant entities in the group that will play an important role to achieve an orderly resolution. The existing regulatory requirements for the reporting of group structures are not suitable for the identification of resolution groups. For example, the "Regulations relating to Banks" require banks to submit a group structure that identifies all interest held as at March 31 and September 30 of each year, or in the event of any major change in the group structure. This regulation potentially results in very detailed and lengthy group structures, without sufficient background information to identify resolution groups. A similar situation may arise with the reporting of financial conglomerates to which non-bank systemically important financial institutions belong. In order to identify resolution groups and group entities that should be excluded by the Governor from the definition of designated institutions, more specific requirements on the reporting of group structures will be placed on designated institution.

    The discussion paper sets out the proposed entities that should be reported to SARB in order to facilitate the identification of resolution groups. These entities include banks, non-bank systemically important financial institutions, payment system operators and participants of a systemically important payment system, holding companies, market infrastructures, and resolution support entities. For certain reportable entities, SARB will also require information about their ownership structures at a minimum level of detail. An understanding of the ownership structure is important when identifying applicable resolution actions, for example, to assess contagion effects if shareholders and creditors are to be bailed in. The format in which this information has to be reported is illustrated in Annexure A of the paper, which provides an illustration of a hypothetical group structure, as well as Annexure B, which sets out the relevant reporting template.

     

    Related Links

    Comment Due Date: November 30, 2020

    Keywords: Middle East and Africa, South Africa, Banking, Reporting, Resolution Framework, Resolution Planning, SARB

    Featured Experts
    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514