Regulatory Alerts2013-04-11
Directive 3/2013: Matters Related to Capital Floors
The South African Reserve Bank’s Registrar of Banks issues Directive 3/2013 to establish the calculation methodology, applicable percentages, and scope for capital floors under the Basel II framework. The directive requires banks and controlling companies utilizing internal ratings-based or advanced measurement approaches to maintain capital floors at transitional percentages of 95, 95, 90, and 80 percent over four years to prevent unintended capital adequacy declines. Institutions must calculate these floors based on month-end balances, submit the results to the Bank Supervision Department within 30 business days of reporting periods, and apply the requirements to all significant entities adopting advanced risk approaches.
Share