Regulatory Alerts2012-05-08
Further Guidance on the Development of Recovery and Resolution Plans by South African Banks
The South African Reserve Bank’s Office of the Registrar of Banks directs South African banks to develop recovery and resolution plans (RRPs) to strengthen crisis preparedness and minimize public fund exposure. Banks must initially draft recovery plans targeting idiosyncratic stress, incorporating mandatory liquidity recovery, capital recovery, and business continuity components alongside explicit trigger criteria, escalation procedures, and stakeholder communication strategies. Development of formal resolution plans is deferred until South Africa’s domestic framework aligns with international standards, requiring banks to primarily supply detailed data to authorities and present their initial recovery plans with supporting documentation at annual board meetings.