Regulatory Alerts2015-02-02
2015 Meetings with Bank and Controlling Company Boards on IFRS 9 and Shadow Banking
The South African Reserve Bank’s Office of the Registrar of Banks mandates that all banks, controlling companies, and foreign branches prepare board presentations and engage in regulatory discussions during 2015 on two priority topics. The first topic focuses on IFRS 9 financial instruments, requiring institutions to demonstrate readiness for the new expected credit loss model, validate current impairment adequacy under prevailing macroeconomic conditions, and outline system and policy adjustments ahead of the 2018 implementation date. The second topic addresses shadow banking, compelling non-executive board members to detail strategic involvement, off-balance-sheet exposures, and associated systemic risks while submitting presentation materials at least three weeks prior to each meeting.