BANKS ACT REGULATIONS: COVERED DEPOSITS AND FUND LIQUIDITY CONTRIBUTIONS

BANKS ACT REGULATIONS: COVERED DEPOSITS AND FUND LIQUIDITY CONTRIBUTIONS

• 05 February 2024
• Financial Sector
• SA Legal Academy

The Prudential Authority has issued a draft directive on ‘minimum regulatory requirements relating to … deposits covered by the Corporation for Deposit Insurance and banks’ fund liquidity contributions’. Input is sought by 28 February 2024.

The draft directive proposes minimum regulatory requirements Iin respect of:

• credit risk (in the context of Banks Act, 1990 Regulation 23), and
• the liquidity coverage and net stable funding ratios (in the context of Banks Act, 1990 Regulation 26).

This is noting that, according to the draft directive:

• the purpose of establishing the corporation is ‘to give depositors reasonable access to their covered deposits when their bank has failed’, and that
• a draft directive published in June 2023 outlined proposals regarding each bank’s fund liquidity contribution to the corporation.

Please click the link below for more information:

• draft directive
• June 2023 proposals

Published by SA Legal Academy Policy Watch

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