Regulatory Alerts2023-10-20
Eligibility of Sukuk Bond Issuance as Level One High-Quality Liquid Assets
The Prudential Authority of the South African Reserve Bank clarifies that Sukuk bonds issued on behalf of the National Treasury qualify as Level One High-Quality Liquid Assets under the Banks Act. This eligibility applies exclusively to banks conducting solely Shari’ah-compliant business or managing Shari’ah-compliant portfolios, provided the instruments meet specified liquidity requirements and are accepted as eligible collateral for Reserve Bank open market operations. Regulated institutions must distribute the circular to their independent auditors and return a jointly signed acknowledgement of receipt to the Authority.
Share