SARB PROPOSES REPURCHASE AGREEMENT FACILITY FOR NON-BANK FINANCIAL INSTITUTIONS

SARB PROPOSES REPURCHASE AGREEMENT FACILITY FOR NON-BANK FINANCIAL INSTITUTIONS

• 06 December 2023
• Financial Sector
• SA Legal Academy

The South African Reserve Bank (SARB) has called for input by 26 January 2023 on a discussion paper exploring ‘the necessity, feasibility, scope and design features’ of a ‘repo facility to assist non-bank financial institutions with liquidity during a market dysfunction’. This is noting that the term ‘repo facility’ refers to a repurchase agreement.

According to an accompanying media statement, it is envisaged that such a facility ‘would only be made available to eligible non-bank financial institutions in episodes of market dysfunction and not idiosyncratic crisis events’. It ‘would not be a standing facility or form part of the SARB’s open market operations’.

Comments should be made using the template provided below.

• discussion paper
• media statement

Published by SA Legal Academy Policy Watch

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