The South African Reserve Bank has published a code of conduct settting out qualifying criteria to be met by commercial banks contributing to the Johannesburg interbank average rate (Jibar) determination process. This is noting that:

  • the Jibar is constructed using quoted rates for negotiable certificates of deposit (NCDs) by Jibar contributing banks
  • NCD trading screens reflect ‘bid and offer rates … for different maturities in the Jibar calculation’, and that
  • NCD rates published on a contributing commercial bank’s trading screen should reflect ‘true market conditions and actual trading levels at all times’.

The code of conduct was developed with the intention of ensuring that contributing commercial banks ‘post accurate rates reflective of their trading environment and funding requirements’. This is because the Jibar reference rate is essentially a ‘snapshot’ of these rates.

Given that eligible Jibar contributors serve on a panel, the code of conduct also prescribes:

  • the obligations of contributing commercial banks
  • related operating rules
  • the Jibar governance process, and
  • panel exit criteria.

Please click the link below for more information:

Published by SA Legal Academy Policy Watch

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