Regulatory Alerts2025-12-04
D14 of 2025 – Large Exposure Requirements
The South African Reserve Bank’s Prudential Authority issues Directive D14 of 2025 to establish comprehensive conditions and limits for measuring, monitoring, and controlling large exposures (LEX) across banks, controlling companies, and foreign branches. The directive mandates a Board-appointed credit committee with specific non-executive director representation to approve exposures exceeding 10% of Tier 1 capital, while integrating revised market risk framework standards into the regulatory calculations. It further standardizes credit risk mitigation treatments, mandates 24-hour breach notifications to the Prudential Authority, and aligns consolidated reporting requirements for systemically important banking groups.
Share