Regulatory Alerts2023-01-25
D1/2023: Matters Related to the Net Stable Funding Ratio
The South African Reserve Bank Prudential Authority issued Directive D1/2023 to calibrate the Net Stable Funding Ratio and establish national discretions for South African banks. The directive phases out a preferential 35 percent available stable funding factor for short-term Rand-denominated corporate funding through a scheduled reduction to zero by 2028, while mandating specific required stable funding treatments for derivative liabilities, cash reserves, and contingent obligations. Banks must apply these calibrated parameters starting January 2018, secure supervisory approval for interdependent asset-liability treatments, and return signed acknowledgements from their chief executives and external auditors.
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