Regulatory Alerts2014-12-15
Provision of a Committed Liquidity Facility by the South African Reserve Bank
The South African Reserve Bank issues revised guidelines establishing a Committed Liquidity Facility to assist banks in meeting the Liquidity Coverage Ratio requirement. The facility is capped at 40 percent of a bank’s required High-Quality Liquid Assets and accepts specific collateral, including rated domestic and foreign debt, securitised residential mortgages, and ring-fenced asset pools. Banks must pay scaled annual commitment fees based on facility usage, cover drawdown costs at the repo rate plus 100 basis points, and comply with strict collateral maintenance, board approval, and quarterly reporting obligations.
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