Regulatory Alerts2015-02-13
Circular 2/2015: Specified Minority Interests in Qualifying Capital
The South African Reserve Bank’s Office of the Registrar of Banks has issued Circular 2/2015 to amend the prescribed treatment for calculating surplus capital attributable to minority interests in shares and instruments qualifying as capital. Effective 1 April 2015, the circular mandates that consolidated minimum capital requirements for common equity tier 1, additional tier 1, and tier 2 capital utilize South African base minima, explicitly incorporating Pillar 2A, conservation, countercyclical, and D-SIB buffers while excluding bank-specific individual capital requirements. Institutions must apply these updated calculation methods to determine qualifying subsidiary capital and return signed auditor acknowledgements of receipt.
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