Regulatory Alerts2015-03-30
Amendment of Banking Regulations under the Banks Act, 1990
The South African National Treasury, acting under the Minister of Finance, has issued Government Notice R. 261 to amend Regulation 23 of the existing banking regulations governing capital and risk-weighted exposures. The amendments revise risk weight assignments for unrated exposures and liquidity facilities, introduce specific 1250 percent risk weights for certain credit exposures, and update credit-conversion factors for eligible liquidity facilities. Furthermore, the notice refines the Internal Ratings-Based (IRB) approach requirements by mandating narrower probability of default bands, clarifying transaction risk assessments, and establishing stricter documentation standards for banks calculating their minimum capital requirements.
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