Regulatory Alerts2018-09-05
Continued Provision of a Committed Liquidity Facility by the South African Reserve Bank to Banks
The South African Reserve Bank’s Prudential Authority has issued revised guidelines governing the continued provision of a committed liquidity facility (CLF) to banks, replacing Guidance Note 5/2017. The facility, capped at 40 percent of required high-quality liquid assets for the initial period, mandates eligible collateral lodging, quarterly special purpose institution reporting on form BA 200, and a fixed 58 basis point commitment fee alongside repo-linked drawdown rates. The SARB will systematically phase out the CLF over three years, reducing the facility cap to 30 percent and 20 percent in subsequent periods before its complete withdrawal by December 2021, while maintaining availability to all qualifying banks.
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