Guidance Note 7/2012: Basel III Industry Training

South African Reserve Bank
From the Office of
the Registrar of Banks

2012-08-15                                                                 G7/2012

To: All banks, controlling companies, branches of foreign institutions, eligible institutions and auditors of banks or controlling companies

Guidance Note 7/2012 issued in terms of section 6(5) of the Banks Act, 1990

Basel III – Industry training

## Executive summary

The Office of the Registrar of Banks (this Office) is currently in the process of amending the Regulations relating to Banks (the Regulations) in accordance with the requirements of Basel III. The proposed amended Regulations relating to Banks (proposed amended Regulations) will be implemented on 1 January 2013.

This Office will therefore be conducting industry training sessions on the proposed amended Regulations during October 2012. The purpose of the training will be to assist attendees with the completion of selected proposed amended statutory returns, as opposed to conceptual training on Basel III.

### 1. Introduction

#### 1.1
In June 2011, the Basel Committee on Banking Supervision (BCBS) released its central reform package to strengthen global capital and liquidity rules with the objective of promoting a more resilient banking sector, commonly referred to as the Basel III framework.¹ The Basel III requirements have accordingly been incorporated in the proposed amended Regulations, which will be implemented in South Africa with effect from 1 January 2013.

### 2. Industry training

#### 2.1
Two industry training sessions will be held at the Conference Centre of the South African Reserve Bank’s Head Office in Pretoria. The training sessions have been scheduled for 16 and 24 October 2012. Attendance is only required at one of the training sessions.

¹ Documents released by the BCBS in respect of the Basel III framework include “Basel III: A global regulatory framework for more resilient banks and banking systems” (June 2011) and “Basel III: International framework for liquidity risk measurement, standards and monitoring” (December 2010).

PO Box 8432 Pretoria 0001 · 370 Helen Joseph Street Pretoria 0002 · South Africa · Tel +27 12 3133911/0861 12 7272 · Fax +27 12 3133758 · www.reservebank.co.za

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#### 2.2
Sessions will be led by members of this Office. The purpose of the training will be to assist attendees with the completion of the proposed statutory returns. This training intervention will therefore focus on how to populate selected amended regulatory BA forms and will not take the form of conceptual training on Basel III. A practical understanding of the proposed amended Regulations and a basic understanding of the Basel III framework are essential for all attendees.

#### 2.3
The following programme will apply to the two training sessions:

| Time          | Activity |
|---------------|----------|
| 08:30 – 09:00 | Registration |
| 09:00 – 10:30 | Welcome<br>Form BA 700 and directives for completion<br>Form BA 600 and directives for completion |
| 10:30 – 11:00 | Break |
| 11:00 – 13:00 | Form BA 300 series and directives for completion<br>Form BA 900 series and directives for completion |
| 13:00 – 14:00 | Lunch |
| 14:00 – 15:30 | Form BA 200 series and directives for completion<br>Form BA 100 series and directives for completion<br>Form BA 400 series and directives for completion<br>Form BA 500 and directives for completion |
| 15:30 – 15:45 | Conclusion |

#### 2.4
Each institution may nominate a maximum of five staff members to attend the training.

#### 2.5
Prospective attendees are requested to notify this Office of their attendance by completing the attached registration form and returning it to this Office before 28 September 2012 for the attention of Mr Neil MacKinnon at Neil.MacKinnon@resbank.co.za.

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### 3. Acknowledgement of receipt

#### 3.1
Two additional copies of this guidance note are enclosed for use by your institution’s independent auditors. The attached acknowledgement of receipt, duly completed and signed by both the chief executive officer of the institution and the said auditors, should be returned to this Office at the earliest convenience of the aforementioned signatories.

René van Wyk  
Registrar of Banks

Encl. 1

The previous guidance note issued was Guidance Note 6/2012, dated 6 July 2012.

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South African Reserve Bank  
Bank Supervision Department  
Industry training session: Basel III - Completion of the statutory BA returns  
16 and 24 October 2012  
Registration form

Institution: ___________________________________________________________

|          | Delegate 1 | Delegate 2 | Delegate 3 | Delegate 4 | Delegate 5 |
|----------|------------|------------|------------|------------|------------|
| Title    |            |            |            |            |            |
| First name |          |            |            |            |            |
| Surname  |            |            |            |            |            |
| Position |            |            |            |            |            |
| Telephone number (w) |          |            |            |            |            |
| E-mail address |          |            |            |            |            |
| Date of attendance |          |            |            |            |            |
| Vehicle registration no. |          |            |            |            |            |
| Dietary requirements: None / Kosher / Halaal / Strictly Halaal |          |            |            |            |            |

Kindly e-mail the completed registration form to Mr Neil MacKinnon at e-mail address Neil.MacKinnon@resbank.co.za by no later than 28 September 2012. Registered delegates will receive an entrance voucher by return e-mail to gain entry to the South African Reserve Bank building.