Assessment of instruments issued by domestic systemically-important banks and controlling companies (D-SIBs) for capital and funding purposes

South African Reserve Bank From the Office of the Registrar of Banks

Ref.: 15/8/3 D7/2016

2016-11-24

To: All banks, controlling companies, branches of foreign institutions, eligible institutions and auditors of banks or controlling companies

Directive 7/2016 issued in terms of section 6(6) of the Banks Act 94 of 1990:

Assessment of instruments issued by domestic systemically-important banks and controlling companies (D-SIBs) for capital and funding purposes

Executive summary

D-SIBs are hereby directed to complete the assessment template, attached hereto as Annexure A, for all instruments issued for capital and funding purposes, on a bi-annual basis. This directive also clarifies the timelines for the submission of the completed assessment template to the Office of the Registrar of Banks (this Office).

1. Introduction

1.1 In November 2013 this Office requested all banks, controlling companies and branches of foreign institutions to complete an assessment template for all instruments that were issued for capital and funding purposes, on an annual basis. The objective of the request was to obtain a clear view of the capital and funding requirements relating to the banking sector going forward.

1.2 Since the exercise previously conducted in the above regard was beneficial both in terms of assessing banks individually and the banking industry as a whole, this Office has decided to expand the exercise to include more detailed information. The revised template is to be completed bi-annually, by banks and controlling companies designated as D-SIBs, at both the ‘bank in Republic’ and ‘controlling company consolidated’ level with reporting dates as at the end of June and December of each year.

2. Directive

2.1 Scope of the assessment

2.1.1 D-SIBs are hereby directed to complete the assessment template, attached hereto as Annexure A, at a bank solo level and a controlling company level.

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2.1.2 This data collection exercise does not replace or substitute any other formal disclosure requirement.

2.2 Submission timelines

2.2.1 The completed templates shall be submitted to this Office by no later than 30 working days following the June and December reporting periods, respectively. The completed templates shall be approved and signed off by the Group Treasurer.

3. Acknowledgement of receipt

3.1 Two additional copies of this directive are enclosed for the use of your institution’s independent auditors. The attached acknowledgement of receipt, duly completed and signed by both the chief executive officer of the institution and the said auditors, should be returned to this Office at the earliest convenience of the aforementioned signatories.

[Signature]

Kuben Naidoo Deputy Governor and Registrar of Banks

Date: 24/11/2016

Encl. 1

The previous directive issued was Directive 6/2016, dated 24 November 2016.