CO-OPERATIVE BANKS ACT REGULATIONS: PRUDENTIAL REQUREMENTS AND ‘LARGE EXPOSURES’ EXEMPTION GAZETTED

CO-OPERATIVE BANKS ACT REGULATIONS: PRUDENTIAL REQUREMENTS AND ‘LARGE EXPOSURES’ EXEMPTION GAZETTED

• 31 May 2024
• Financial Sector
• SA Legal Academy

National Treasury has gazetted a notice exempting co-operative banks from Regulations 4(1)(b)(i) and 5 under the Co-operative Banks Act, 2007. This is noting their obligations in respect of fund liquidity contributions to the Corporation for Deposit Insurance in terms of regulations under the Financial Sector Regulation Act, 2017. The exemption will apply for two years.

In place since 1 July 2009, Regulations 4(1)(b)(i) and 5 under the Co-operative Banks Act respectively prescribe:

• the minimum prudential requirements to be met and maintained by affected banks in respect of all loans, in addition to the minimum capital adequacy ratio, and
• caps on large exposures.

The deposit insurance regulations came into effect on 1 April 2024.

• exemption notice
• deposit insurance regulations
• Co-operative Banks Act regulations

Published by SA Legal Academy Policy Watch

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