Regulatory Alerts2023-08-30
Directive on Matters Relating to Eligible External Credit Assessment Institutions (D7-2023)
The Prudential Authority has issued Directive D7-2023 to formally designate Global Credit Rating Co., Moody’s, and Standard & Poor’s as eligible external credit assessment institutions (ECAIs) for South African banks. Banks must notify the Authority of their chosen ECAIs within two months and apply prescribed mapping tables to convert international scale ratings into standardized risk weights for calculating capital and reserve requirements. This directive supersedes previous circulars and ensures consistent capital calculations for credit risk, securitisation exposures, and credit derivative instruments under the standardised approach.
Share