BANKS ACT: INPUT SOUGHT ON PROPOSED BASEL III POST-CRISIS REFORMS IMPLEMENTATION ROADMAP

BANKS ACT: INPUT SOUGHT ON PROPOSED BASEL III POST-CRISIS REFORMS IMPLEMENTATION ROADMAP

• 24 July 2025
• Financial Sector
• SA Legal Academy

The Prudential Authority has called for input by 11 August 2025 on a draft directive proposing a roadmap for implementing:

• Basel III post-crisis reforms [including revisions to the standardised (STA) and internal ratings-based (IRB) approaches to managing credit risk], and
• 7 June 2024 proposals on the prudential treatment of distressed restructured credit exposures, which have since been revised and will eventually replace the prevailing 2015 directive.

This is noting that:

• the revised internal ratings-based (IRB) and the standardised (STA) approaches came into effect on 1 July 2025 – in keeping with timelines set out in the Prudential Authority’s July 2023 guidance note
• in September 2024 the authority published an updated version of proposed amendments to regulations under the 1990 Banks Act (including the revised IRB and STA approaches), and that
• having been finalised, the amendments were gazetted on 26 June 2025 for commencement on 1 July 2025.

Given the ‘effort and significant resources’ likely to be entailed in making all the necessary changes, the draft roadmap reflects a phased approach to implementation also taking account of related internal governance and Prudential Authority approval procedures.

• draft directive
• appendix to draft directive
• regulatory amendments
• July 2023 guidance note
• 2015 directive

Published by SA Legal Academy Policy Watch

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