Regulatory Alerts2013-06-27
D9/2013: Investments, and loans and advances by controlling companies: Section 50 of the Banks Act, 1990
The South African Reserve Bank issued Directive 9/2013 to specify the prescribed percentage, amount, and consolidation basis for investments and loans by controlling companies under Section 50 of the Banks Act, 1990. The directive mandates that the aggregate amount of such investments and loans must not exceed 40 percent of the controlling company's share capital and reserve funds calculated on a consolidated basis. This regulation replaces Directive 3/2011 and aligns supervisory requirements with Basel II and III frameworks to ensure controlling companies remain primarily focused on banking activities.
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