Regulatory Alerts2005-01-07
Banks Act Circular 2/2005: New Capital Accord (Basel II) Impact Study and Related Requirements
The South African Reserve Bank issued Banks Act Circular 2/2005 to mandate all banks, branches of foreign banks, and mutual banks to participate in a Basel II impact study and comply with related implementation requirements. The circular requires entities to submit Quantitative Impact Study 4 worksheets, capital management descriptions, and disclosure-compliant financial statements by specified deadlines in 2005 to assess preparedness for the January 2008 implementation date. These submissions aim to evaluate the financial impact of Basel II across Pillar I capital requirements, Pillar II capital management, and Pillar III disclosure standards while promoting sound project management practices.
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