Regulatory Alerts2021-10-29
Withdrawal of Temporary Liquidity Coverage Ratio Relief Measure (D8/2021)
The Prudential Authority has issued Directive D8/2021 to withdraw the temporary 80 percent liquidity coverage ratio relief for South African banks. Banks must progressively restore their minimum liquidity coverage ratio to 90 percent by 1 January 2022 and fully return to the standard 100 percent requirement by 1 April 2022. This phased reinstatement reflects normalized financial markets and robust bank liquidity, with non-compliant institutions required to submit written explanations to the Authority.
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