BANKS ACT: INPUT SOUGHT ON TWO DRAFT DIRECTIVES

BANKS ACT: INPUT SOUGHT ON TWO DRAFT DIRECTIVES

• 06 March 2025
• Financial Sector
• SA Legal Academy

The Prudential Authority has called for public comments on proposals for two directives to be issued under the 1990 Banks Act.

One draft directive seeks to specify the appropriate threshold amounts to be used when implementing the various requirements of standardised and internal ratings-based approaches to:

• classifying credit risk exposures
• calculating minimum capital and reserve fund requirements
• regulatory reporting, and
• classifying assets and liabilities in the context of:
  • liquidity risk framework requirements, and
  • the framework for interest rate risk in the banking book.

Once in force, the proposed new directive will replace Directive 1 of 2016 dated 12 April 2016 and withdraw Directive 8 of 2023 dated 28 September 2023. Unfortunately, at the time of writing the Prudential Authority website was intermittently offline. The prevailing directives were therefore not available. 

The other draft directive focuses on additional information intended to enhance the Prudential Authority’s understanding of South African securitisation market risk. Once finalised, it will replace Directive 4 of 2017 dated 27 September 2017. Once agan, at the time of writing the Prudential Authority website was intermittently offline and the prevailing directive therefore unavailable.

• draft directive on threshold amounts (input by 31 March 2025)
• draft directive on securitisation market risk (input by 25 March 2025)
• Annexure A to draft directive on securitisation market risk
• Annexure B to draft directive on securitisation market risk

Published by SA Legal Academy Policy Watch

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