Regulatory Alerts2017-07-28
Provision of a Committed Liquidity Facility by the South African Reserve Bank
The South African Reserve Bank has updated its guidelines for a Committed Liquidity Facility to ensure banks maintain compliance with the Liquidity Coverage Ratio. The facility caps eligible borrowing at 40 percent of High Quality Liquid Assets, mandates a 58 basis point annual commitment fee, and specifies collateral eligibility alongside special purpose institution reporting requirements. These updated provisions, effective from December 2017 to November 2018, clarify pricing mechanisms, drawdown limits, and application deadlines for all participating banks.
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