FINANCIAL SECTOR: PRUDENTIAL TREATMENT OF DISTRESSED RESTRUCTURED CREDIT EXPOSURES

The Prudential Authority has called for input by 9 November 2026 on proposals for the treatment of distressed restructured credit exposures.

Once finalised, the new directive will repeal and replace one in force since 21 October 2025. This is noting an ‘inconsistency’ affecting the probation period where a distressed restructured credit exposure defaults or is restructured again.

The proposed replacement directive seeks to remedy the error, and clarify the circumstances in which a probation period should restart.

  • draft replacement directive
  • October 2025 Directive 11 (to be replaced)

Published by SA Legal Academy Policy Watch

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