Regulatory Alerts2025-10-31
D12-2025 - Credit Risk Roadmap
The Prudential Authority has issued Directive D12-2025 to mandate a phased implementation roadmap for Basel III post-crisis credit risk reforms and distressed restructured exposures across South African banks. Banks must update their standardised and internal ratings-based models, systems, and reporting processes while securing prior written approval for tiered model changes before specific deadlines. Standardised approach institutions must achieve full compliance by January 2027, whereas internal ratings-based banks will complete model redevelopment and credit restructuring directives across four phases ending in December 2028.
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